Volvo Group's looking to build battery plant in Sweden
In order to meet the growing demand for battery electric heavy-duty vehicles and machines, the Volvo Group has initiated the process to establish 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 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,” Martin Lundstedt, President and CEO of the Volvo Group, in a press release
He continues to say that this ramp-up will require large volumes of high-performing batteries and that it is a logical next step for the group to include battery production in its future industrial footprint.
“We aim to do this together with partners and the journey starts now,” says Martin Lundstedt.
The Skaraborg region in Sweden has been pointed out as an ideal location for the plant following an extensive site localisation study. The proposed site in the municipality of Mariestad is situated close to the Volvo Group’s current main powertrain plant in Skövde – meaning that the site will benefit from the region’s existing industrial and logistics infrastructure as well as competence in advanced, high-volume manufacturing. Adding to this is the fact that the Volvo Group’s R&D centers and headquarters in Gothenburg are only two hours away.
The current plan is to gradually increase capacity and reach large-scale series production by 2030. 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.
However, the establishment of the production site is subject to approvals from relevant authorities. The final localisation will be determined after the public consultation has been conducted.