Safety essential Volvo has discontinued LiDAR technology, which the company had previously claimed significantly improved vehicle safety, after terminating a contract with technology partner Luminar Technologies.
LiDAR – which stands for “Light Detection and Ranging” – is a laser-based system. The Volvo EX90 electric SUV, launched in Australia in 2024, was the automaker’s first car to feature this technology.
The ES90 electric liftback, which will arrive in Australian showrooms early next year, was also announced LiDAR technology that works with five radars, seven cameras and twelve ultrasonic sensors.
Volvo uses LiDARs have a “bubble” over the windshield where the technology is installed – EX90 and ES90 are expected to lose their bubbles in 2026.
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“Volvo Cars has decided to remove this “We will remove the LiDAR sensor from its EX90 and ES90 vehicles and end our collaboration with supplier Luminar,” Volvo Cars USA said in a statement.
Volvo Australia has confirmed this Daily Sparkz existing stocks Cars equipped with LiDAR, including about 30 to 40 ES90s, will be the last as all ongoing factory orders do not include this technology.
The move came after Volvo instead made the technology that was originally standard equipment optional – prompting Luminar Technologies, in which the company owns a stake, to file a lawsuit against the automaker last month in response.
“Volvo Cars made this decision to limit the company’s supply chain risk and it is a direct result of Luminar’s failure to fulfill its contractual obligations to Volvo Cars,” Volvo Cars USA said in its statement.
The automaker said the “failure” of Luminar Technologies, with which it has been developing the technology since 2018, forced it to terminate a five-year contract with the company.
In 2024, electric car maker Tesla was Silicon Valley-based Luminar Technologies’ largest customer, although Tesla CEO Elon Musk had previously called the technology “fucking stupid.”
Luminar Technologies also has partnerships with Mercedes-Benz, Daimler Truck AG and other technology companies including NVIDIA and Intel Mobileye, claiming the technology will usher in a “new era of security.”
According to Volvo, LiDAR has been used for functions such as adaptive cruise control, automatic parking and autonomous emergency braking LiDAR would play a key role in the development of autonomous driving.
The benefits of LiDAR has greater depth of field than camera-based systems and the ability to “see” in various weather conditions and day and night.
Volvo said previously LiDAR would help reduce the number of “serious” accidents by 20 percent, or a fifth, with Luminar Technologies claiming the technology could save up to 1 million lives annually.
The Swedish brand says the distance from LiDAR will not reduce the safety level of its vehicles, but has not detailed what impact the decision will have on specific features.
The EX90 received a five-star rating from safety regulator Euro NCAP this month, with the same rating set to be applied to Australian versions as part of a data sharing agreement with ANCAP.
“The company’s products can provide a high level of safety and driver assistance, enabled by the cars’ powerful core computing coupled with their advanced sensor set, with or without.” LiDAR,” Volvo said in a statement.
In early November 2025, Volvo announced it would share more of its models’ hardware and software with Geely to reduce costs – and add more hybrid technology to its global offering.
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