Volvo Group Expedites Work To Set Up Battery Production Plant In Sweden

The Volvo Group has announced that it has initiated the process to establish a large-scale production plant for battery cells in Sweden. This is aimed at meeting the growing demand for battery electric heavy-duty vehicles and machines.

Martin Lundstedt, President and CEO of the Volvo Group, commented on the development, “We aim to lead the transition to a decarbonized transport system and have the long-term ambition to offer our customers solutions that are 100% fossil free. There is a strong demand from our customers already today, and by 2030, it is our ambition that at least 35% of the products we sell are electric.”

The CEO also said that the strong demand will require “large volumes of high-performing batteries,” produced using fossil free energy and it is “a logical next step” for the company to include battery production in the future industrial footprint. He said that the Volvo Group aims to do this together with partners and the journey starts now.

Volvo further added that an exhaustive site localization study has revealed that the Skaraborg region in Sweden makes for an ideal site for the plant. The proposed location in the municipality of Mariestad is in proximity to the Volvo Group’s existing primary powertrain plant in Skovde. It will stand to benefit from the region’s existing industrial and logistics infrastructure and build on a strong heritage and world-class competence in advanced, high-volume manufacturing, while having access to Sweden’s rich supply of fossil free energy.

The Volvo Group is looking to gradually augment capacity while also attaining large-scale series production by 2030. The battery cells will be designed particularly for commercial vehicle applications, supporting the global roll-out of electric trucks, buses, construction equipment and electric drivelines for different applications.

Volvo said that the establishment of the production site is subject to approvals from authorities. The final localization will follow public consultation. The operations are subject to environmental permit approvals.