10 billion SEK investment in our electrification journey

Our future is all-electric – we aim to be a pure electric car maker by 2030. To reach this target, we must have the facilities and infrastructure in place to do so. In preparation for our next generation of fully electric cars, we’re investing SEK 10 billion into our plant in Torslanda, Sweden.

As part of the investments, we’re upgrading the plant with more sustainable and innovative technologies and manufacturing processes. These include the introduction of mega-casting of aluminium body parts, a new battery assembly plant and fully refurbished paint and final assembly shops.

The investments follow on our recent announcement with Northvolt, the leading battery cell company, to invest SEK 30 billion in the development and manufacturing of high-quality, tailor-made batteries for the next generation of pure electric Volvos.

“With these investments, we take an important step towards our all-electric future,” said Håkan Samuelsson, our chief executive. “Torslanda is our largest plant and will continue to play a crucial role in our transformation as we move towards becoming a pure electric car maker by 2030.”

By mega-casting the aluminium body parts for the next generation of electric models, we take an important step forward in our electrification strategy, and on our path to become a climate neutral company by 2040 – the biggest challenge we’ve ever faced.

Mega-casting is a manufacturing process whereby many stamped parts are replaced with one single, large aluminum casting. Current car chassis are typically made up of hundreds of individual parts, made of many different materials, and must be assembled in several different ways using welds, bolts and adhesives.

Casting the floor structure of the car as one single aluminium part instead of more than 100 steel details reduces weight, which in turn improves the energy efficiency and thereby the electric range of the car. The process also allows our designers to use the available space inside the cabin and luggage area in the best way possible, boosting the overall versatility of the car.

Mega-casting also creates multiple benefits in terms of sustainability, cost and car range performance. It’s also a leap into the future; we’re the second car maker in the world to implement this manufacturing technology.

Other benefits from mega-casting include reduced complexity in the manufacturing process. That in turn creates cost-savings in terms of material use and logistics, reducing the overall environmental footprint across the manufacturing and supply chain networks.

The upgrade of the paint shop involves the installation of new machinery and implementing new processes, which are expected to support the ongoing reduction of paint shop energy consumption and emissions – all in line with our work to consistently cut carbon emissions across the business.

“Today is a great day for the Torslanda plant as we are making it fit for the future with this significant investment,” said Javier Varela, head of engineering and operations. “Our future as a company is all-electric and that requires a variety of upgrades across the plant, to ensure that Torslanda can continue to build premium electric cars of the highest quality.”

A new battery assembly plant will integrate battery cells and modules in the floor structure of the car, while the assembly shop is being refurbished and adapted for the manufacturing of the next generation fully electric cars, for example with a new ‘marriage point’ where the top body and the floor of the car meet.

The logistics area will also be completely refurbished, improving material flow and optimising the transport of goods and parts into the plant. We’ll also invest in facilities around the plant, such as break areas, locker rooms and offices, to further improve the working environment for all our employees.

The investments mark an important milestone on our roadmap to become a fully electric car company by 2030 and reflect our commitment to a long-term future in our hometown of Gothenburg.