GOTHENBURG, Sweden—To meet the growing demand for battery electric heavy-duty vehicles and machines, the Volvo Group has initiated the process to establish a large-scale battery assembly plant in Sweden.

“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 percent fossil free,” says 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 percent 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.”

The company is evaluating Mariestad, Sweden, as a site for the factory. Mariestad is located near Volvo Group’s current powertrain assembly plant in Skövde, Sweden. The Volvo Group’s R&D centers and headquarters in Gothenburg are only two hours away.

The Volvo Group plans to gradually increase capacity and reach large-scale series production by 2030. 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.