Volvo Group to produce battery cells in Sweden

Volvo Group to produce battery cells in Sweden

To meet the growing demand for battery-electric heavy-duty vehicles and machines, commercial vehicle manufacturer Volvo wants to set up a large-scale battery cell production plant in Swede

 "We want to drive the transition to a decarbonised transport system and have a long-term ambition to offer our customers solutions that are 100 per cent fossil-free. There is already strong demand from our customers and by 2030 our goal is for at least 35 per cent of the vehicles we sell to be electric," says Martin Lundstedt, President and CEO of the Volvo Group.

This ramp-up will require large quantities of powerful batteries, he says, and it is a logical next step for Volvo to incorporate battery production into its business activities. The commercial vehicle manufacturer wants to do this together with partners. Volvo has targeted the Skaraborg region in Sweden as the ideal location. The preferred location in the municipality of Mariestad is close to an existing large Volvo Group plant in Skövde and could benefit from the region's existing industrial and logistics infrastructure, such as a secure supply of green electricity to produce the battery cells in a climate-neutral way, the group said in a recent statement. The Volvo Group's R&D centres and headquarters in Gothenburg are only two hours away from the planned battery factory.

The Volvo Group plans to increase capacity and achieve large-scale production by 2030 gradually. The battery cells will be developed specifically for commercial vehicle applications. They will support the global roll-out of electric trucks, e-buses, electric construction equipment and electric powertrains for various applications. The establishment of the production facility is still subject to approval by the relevant authorities, he said. The final location is to be determined after the public consultation has been conducted.


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