The Volvo Group will establish a large-scale production plant for battery cells in Sweden that will serve its heavy-duty vehicles, trucks, and machines.

The truck manufacturer recently concluded an extensive site localization study and determined that the Skaraborg region will serve as the ideal location for the site. Volvo Group says the proposed site will sit in the municipality of Mariestad, close to its main powertrain plant in Skövde.

Volvo Group says the battery cell plant will also benefit from the region’s existing industrial and logistics infrastructure, all while having easy access to the country’s rich supply of fossil free energy. Furthermore, the Volvo Groups’ research and development centers and headquarters in Gothenburg are just two hours away.

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“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,” Volvo Group chief executive and president Martin Lundstedt said. “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.”

Volvo says it will gradually increase capacity at the site and reach large-scale series production by 2030. The battery cells will be designed specifically for commercial vehicle applications and support its global roll-out of electric trucks, buses, construction equipment and electric drivelines.

Local authorities still need to approve the proposed plans and the specific location will be determined after public consultations.

Volvo Trucks has been ramping up its range of electric vehicles in recent years and starting from 2021, all-electric versions of its entire line-up of heavy-duty models have been available.