Automaker and has based the direct will of around Eur1. 2 billion ($1.25 billion) to build a third electric vehicle factory in Europe near Kosice, Slovakia, it said July 1.
Volvo to Build First New European Plant in 60 Years, Dedicated to EVs
Volvo Cars has announced plans to open a new climate-neutral electric vehicle (EV) manufacturing plant in Kosice, Slovakia, marking the company's first new European facility in nearly six decades. The plant will have the capacity to build 250,000 vehicles per year and will produce only EVs.
Construction Timeline and Strategic Location
Construction is expected to begin in 2023, with installation of production equipment and assembly lines scheduled for 2024. Production is set to commence in 2026.
Kosice was chosen for its strong logistics infrastructure, access to a robust supplier base, and favorable incentives provided by the Slovak government, Volvo said. The plant will complement Volvo’s existing production hubs in Ghent, Belgium, and Torslanda, Sweden.
Volvo’s Electrification and Climate Goals
The Kosice plant represents a critical step in Volvo’s broader strategy to become a 100% electric car company by 2030 and climate-neutral by 2040. Combined, the Torslanda and Ghent plants currently have a production capacity of 600,000 vehicles per year. Volvo aims to sell 1.2 million vehicles annually worldwide by 2025.
“Growing in Europe, our most important sales region, is key to our transformation to electrification and continuing growth,” said Jim Rowan, Chief Executive Officer of Volvo Cars.
Battery Metals Prices Soar Amid EV Demand
The global surge in EV demand continues to drive up prices for key battery materials. According to S&P Global Commodity Insights, Platts' assessments for seaborne lithium carbonate and lithium hydroxide soared 107.1% and 133.4% respectively in the first half of 2022, reaching $70,000/mt and $74,000/mt CIF North Asia by the end of June.
