Swedish truck maker Volvo Group (VOLVb.ST) plans to establish a large-scale production plant for battery cells, gradually building it up towards 2030 to meet a growing demand for zero-emission transportation, the company said on Wednesday.
“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,” CEO Martin Lundstedt said in a statement.
“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.”
The batteries will be tailored to commercial vehicles such as trucks, buses, construction equipment and other electric drivelines.
The development of a production site in Sweden’s Skaraborg region will be done together with partners, the company said.
The company did not provide an investment forecast.