Volvo Group establishes battery production facility in Sweden
The Volvo Group has started the process to establish a large-scale production facility for battery cells in Sweden.
The company says the initiative is designed to meet “the growing demand for battery electric heavy vehicles and machinery”.
Martin Lundstedt, president and CEO of the Volvo Group, says: “We aim to lead the transition to a carbon dioxide-free transport system and have the long-term ambition to offer our customers solutions that are 100 percent fossil-free.
“There is a strong demand from our customers already today and by 2030 it is our ambition that at least 35 percent of the products we sell are electric.
“This ramp-up will require large volumes of high-performance batteries, produced with fossil-free energy and it is a logical next step for us to include battery production in our future industrial footprint. We aim to do this together with partners and the journey begins now.”
An extensive site localization study has been carried out, which indicates that the Skaraborg region in Sweden is an ideal location for the facility.
The proposed site in Mariestad municipality is located close to the Volvo Group’s current main powertrain plant in Skövde and will benefit from the region’s existing industrial and logistics infrastructure and build on a strong heritage and world-class expertise in advanced, high-volume manufacturing. , while having access to Sweden’s rich supply of fossil-free energy.
The Volvo Group’s R&D center and headquarters in Gothenburg are just two hours away.
The Volvo Group plans to gradually increase capacity and reach large-scale series production by 2030. The battery cells will be designed specifically for commercial vehicle applications and support the global rollout of electric trucks, buses, construction equipment and electric powertrains for various applications.
Establishment of the production site is subject to approvals from the relevant authorities. The final location will be determined after the public consultation has been completed and the operation is subject to environmental permits.