Volvo Group plans large scale battery cells plant in Sweden

The Volvo Group plans to gradually increase capacity and reach large-scale series production by 2030.

Volvo Group plans large scale battery cells plant in Sweden

The Volvo Group has initiated the process to establish a large-scale production plant for battery cells in Sweden, given the growing demand for battery for electric heavy-duty vehicles and machines. An extensive site localisation study has been done but establishment of the production site is subject to approvals from relevant authorities.

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 Group plans to gradually increase capacity and reach large-scale series production by 2030. 

Speaking on the initiative, Martin Lundstedt, President and CEO of the Volvo Group said, “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. 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 proposed site indicated to be in Sweden’s Skaraborg region in the municipality of Mariestad. This area 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. This site is also likely to give Volvo the benefit of its strong heritage, advanced competence in high-volume manufacturing while being abe to access Sweden’s rich supply of fossil free energy. Additionally, the site is also just two hours away from Volvo Group’s R&D centers and headquarters in Gothenburg.  

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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