Volvo Group plans battery production plant in Sweden

August 11, 2022

Volvo’s new large-scale production plant will be located in the Mariestad municipality of Sweden (Courtesy Volvo)

In an effort 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. An extensive site localisation study has been carried out, which has led the company to select Sweden’s Skaraborg region.

The proposed site in the municipality of Mariestad is situated close to the Volvo Group’s current main powertrain plant in Skövde and is expected 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’s R&D centres and headquarters in Gothenburg are only two hours away.

“We aim to lead the transition to a decarbonised transport system and have the long-term ambition to offer our customers solutions that are 100% fossil free,” stated Martin Lundstedt, president and CEO of the Volvo Group.

The Volvo Group plans to gradually increase capacity and reach large-scale series production by 2030, with at least 35% of products sold being electric. 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.

Lundstedt continued, “This ramp-up will require large volumes of high-performing batteries, produced using 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 starts now.”

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 and operations are subject to environmental permit approvals.

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