In a bid to meet the growing demand for battery electric heavy-duty vehicles and machines, Volvo Group has initiated the process of establishing a large-scale production plant for battery cells in Sweden. The final localisation will be determined after the public consultation, and operations are subject to environmental permit approvals, a communication from the company said.
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.
It added that the group plans to increase capacity and reach large-scale series production gradually by 2030.
Martin Lundstedt, President and CEO, Volvo Group, noted that there is a strong demand from the clients at present, and by 2030, the company aims to sell 35% of its products as EVs.
An extensive site localisation study has been done, which indicates that the Skaraborg region in Sweden is an ideal 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 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. Interestingly, the group’s R&D centres and headquarters in Gothenburg are two hours away from the site, the release added.