Car manufacturer Volvo has reportedly started the process to establish a site for the large-scale production of electric vehicle (EV) batteries in Sweden.
The move comes as part of a corporate objective to meet growing demand for EVs.
“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,” said Martin Lundstedt, president and CEO of the Volvo Group.
“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.”
Volvo claims it has run a localisation study to find the best location for the plant, which indicated the Skaraborg region in Sweden would be a good fit. This is partially based on its proximity to the company’s main powertrain plant in Skövde.
The car company also cites Sweden’s strong supply of renewable energy and its manufacturing heritage as reasons for the selection.
Volvo intends to reach large-scale cell production by 2030 to support the rollout of electric commercial vehicles, such as trucks, buses and construction equipment.
Site construction will depend on approval from relevant authorities and environmental permit approvals.
