Volvo’s Ghent plant to manufacture battery from 2025 with initial investment of 75 million euro | The Financial Express

Volvo’s Ghent plant to manufacture battery from 2025 with initial investment of 75 million euro

The investment decision to install battery module manufacturing capacity in Ghent is seen as a key step by the Volvo Group to shape its future value chain for battery systems.

Volvo’s Ghent plant to manufacture battery from 2025 with initial investment of 75 million euro
The battery module manufacturing line in Volvo's Ghent plant will be able to use battery cells both from partners and from the planned battery cell plant in Sweden.

Taking forward the Volvo Group’s ambition to ensure at least 35 percent of the vehicles sold worldwide will be electric by 2030, its truck plant in Ghent, Belgium will start producing battery modules in 2025. The investment frame for this first step of module manufacturing is around 75 million euro.

The investment decision to install battery module manufacturing capacity in Ghent is seen as a key step by the Group to shape its future value chain for battery systems. The battery module manufacturing line in Ghent will be able to use battery cells both from partners and from the planned battery cell plant in Sweden.

Jens Holtinger, Executive Vice President Group Trucks Operations elaborated that the investment process to establish battery module manufacturing in Ghent has started, “The building is expected to be 12,000 m2 and be located at the Volvo Group manufacturing site. The new high-tech module factory will consist of an almost fully automated process with robots. This means that employees with the necessary competences will be recruited, both externally and by building on our internal competences.”

The Volvo Group truck assembly plant in Gothenburg, Sweden, is already building heavy-duty electric trucks as the first global manufacturer in the world. The series production of these heavy-duty, 44-tonne electric trucks started in Q3 2022.

In the second half of 2023, the plant in Ghent will also start producing battery electric heavy-duty trucks. The battery packs needed to power these electric trucks are to be built in the Ghent plant. Speaking after the Q3 earnings on October 20, Volvo President and CEO had said that, “the ramp up of electric vehicles 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.”

In fact, in Q3 2022 the Volvo Group posted strong earnings growth with net sales increasing by 35 percent on the back of steady vehicle sales and growth in the service business.

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First published on: 27-10-2022 at 22:15 IST