Volvo Ditching LiDAR in 2026

Volvo Ditches LiDAR Tech in 2026, Sparks Legal Battle with Supplier Luminar

Featured Image: Volvo EX90 with LiDAR roof bump (Source: Electrek/Volvo)

Volvo is scrapping Luminar-supplied LiDAR technology from its flagship EX90, ES90, and Polestar 3 models entirely by 2026, escalating an ongoing dispute between the automaker and its former tech partner. This follows Volvo’s recent move to demote LiDAR from standard to optional equipment—a decision now hardened into a full exit.

The Breakdown:

• Contract Canceled: Luminar disclosed in an October 31 SEC filing that Volvo will remove LiDAR (including its next-gen “Halo” system) as early as April 2026, suspending all commitments until at least 2027–2029.
• Volvo’s Stance: A Volvo Cars USA spokesperson cited “supply chain risk exposure” and Luminar’s “failure to meet contractual obligations.”
• Luminar’s Response: The company halted future Iris LiDAR shipments to Volvo, filed a damages claim, and suspended its 2025 financial guidance.

The fallout deepened on November 14 when Volvo officially terminated its contract with Luminar, risking litigation. The LiDAR reversal comes alongside Volvo’s major EX90 upgrades, including a new 800V architecture for faster charging and improved automated driving features.

Why It Matters:
Volvo once championed LiDAR as a safety differentiator, making its abrupt U-turn notable. Critics question whether ditching the sensor will impact the EX90’s driver-assist capabilities—or paradoxically resolve its software glitches by reducing computational load.