Large-scale battery production planned for Sweden

To meet a growing demand for battery electric heavy-duty vehicles and machines, the Volvo Group has begun the process of establishing a large-scale production plant for battery cells in Sweden.

“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. 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,” said Martin Lundstedt, President and CEO of the Volvo Group.

“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.”

An extensive site localisation study has identified the Skaraborg region in Sweden as the best location for the plant. The proposed site in the municipality of Mariestad is situated close to the Volvo Group’s current main powertrain plant in Skövde and will benefit from the region’s existing industrial and logistics infrastructure. It will build on a strong heritage of 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.

The Volvo Group plans 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 rollout of electric trucks, buses, construction equipment and electric drivelines for different applications.

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, with operations subject to environmental permit approvals.

Image courtesy of the Volvo Group.