Volvo Group, which is one of the world’s leading manufacturers of trucks, buses, construction equipment, industrial engines, and many more, has decided to respond to the increase in demand for electric vehicle batteries by establishing a large-scale battery factory in Sweden.
Over the past years, Volvo group vowed to sell over 500,000 electric vehicles worldwide by 2025 to provide customers with the freedom to move in a personal, sustainable, and safe way. Volvo has emerged as one of the market leaders in manufacturing electric trucks and buses such as VNR Electric, Volvo FL Electric, and many more.
Therefore to meet the increase in demand for electric vehicle batteries, the Volvo group has started the process to establish a large-scale production plant for battery cells in Sweden. The company president and chief executive office, Martin Lundstedt commented on this development saying:
“We aim to lead the transition to a decarbonized 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 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. 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”.
This development will help to solve the shortage expectations that Stellantis CEO, Carlos Tavares pointed out earlier this year saying ‘ He expects a shortage of EV batteries by 2024-2025, followed by a lack of raw materials for the vehicles that will slow availability and adoption of Electric Vehicles by 2027-2028’(CNBC, 2022).
As the establishment of the production site is yet to be approved by the relevant officials, this announcement of Volvo’s development will have benefits on national as well as international electromobility markets.