Volvo Group starts process to establish plant for battery production in Sweden

To meet the growing demand for battery-electric heavy-duty vehicles and machinery, the Volvo Group has started the process of setting up a large-scale battery cell production facility in Sweden.

To meet the growing demand for battery-electric heavy-duty vehicles and machinery, the Volvo Group has started the process of setting up a large-scale battery cell production facility in Sweden.

“We want to lead the transition to a zero-carbon transportation system and have a long-term ambition to provide our customers with solutions that are 100% fossil-free. There is already strong demand from our customers today and by 2030 it is our ambition that at least 35% of the products we sell are electric. This ramp-up requires large quantities of high-performance batteries, produced from 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,” said Martin Lundstedt, Volvo Group President and CEO.

An extensive site survey has been carried out, which shows that the Skaraborg region in Sweden is an ideal location for the factory. Close to the Volvo Group’s current main powertrain plant in Skövde, the proposed site in Mariestad Municipality will take advantage of the region’s existing industrial and logistics infrastructure and build on a strong heritage and world-class expertise in advanced, large-scale manufacturing, while they have access to Sweden’s rich supply of fossil-free energy. The Volvo Group’s R&D centers and headquarters in Gothenburg are just a two-hour drive away.

The Volvo Group plans to gradually increase capacity and reach large-scale series production by 2030. The battery cells will be specifically designed for commercial vehicle applications, supporting the global rollout of electric trucks, buses, construction equipment and electric powertrains for various applications.

The location of the production site is subject to approvals from the relevant authorities. The final location will be determined after the public consultation has taken place and the works are subject to the approval of an environmental permit.

SOURCE: Volvo Group

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