Volvo Group Begins Process to Establish Plant for Battery Production in Sweden
To meet the growing demand for battery electric heavy-duty vehicles and machines, the Volvo Group says it has initiated establishing a large-scale production plant for battery cells in Sweden.
“We aim to lead the transition to a decarbonized transport system and have the long-term ambition to offer our customers 100% fossil free solutions. There is a 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 will require large volumes of high-performing batteries produced using fossil-free energy. 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 starts now,”
Says Martin Lundstedt, President and CEO of the Volvo Group.
An extensive site localization study has been done, which indicates that the Skaraborg region in Sweden is an ideal location for the plant. The proposed site in the municipality of Mariestad is situated 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 solid heritage and world-class competence in advanced, high-volume manufacturing while having access to Sweden’s rich supply of fossil-free energy. In addition, the Volvo Group’s R&D centres and headquarters in Gothenburg are only two hours away.
The Volvo Group plans to increase capacity and reach large-scale series production by 2030 gradually. The battery cells will be designed specifically for commercial vehicle applications, supporting the global roll-out of electric trucks, buses, construction equipment and electric drivelines for different applications.
The establishment of the production site is subject to approvals from relevant authorities. The final localization will be determined after the public consultation has been conducted and operations are subject to environmental permit approvals.