The Volvo group creates a business area for accelerating electrification

The Volvo group creates a business area for accelerating electrification

Editor Wakesho

The new business area for Volvo Energy will strengthen the Group's business over the life cycle and the customer offer for charging infrastructure. It will also reduce the environment's impact from electric to hybrid-electric commercial vehicles and machines by giving used batteries a second life in different applications.

According to Martin Lundstedt, President and CEO, there is a growth of demand for electric cars among the customers; therefore, it accelerates the transition towards a sustainable transport solution. The company's primary objective is to offer its customers the most sustainable transport solutions. The company's ambition is to give its customers the most competitive electrification solutions, such as battery and charging facilities. Volvo Energy, we are taking a holistic view of the entire life cycle, which benefits both customers' business and society as a whole.

The Volvo Group's offer of electric vehicles and machines ranges from city buses and trucks for waste management, construction, and urban distribution to compact excavators and loaders. The roll-out of additional electric vehicles and related services will continue at a high pace, and later this year, it will also include, e.g., heavy-duty trucks for regional transports or construction.

Volvo Energy will be a business area with full profit and loss responsibility. It will have an internal role, providing batteries and charging solutions to the Volvo Group's other business areas. An external part offering used, remanufactured, and refurbished batteries to customers for use across different applications. Volvo Energy will also carry the Group's responsibility for hydrogen infrastructure solutions for fuel cell electric vehicles. Collaborations with various business partners and actors across the ecosystem will be key.

Commercial vehicle batteries will be used for many years in the vehicle before they need to be replaced or remanufactured/refurbished. However, suppose completely new batteries are fitted to the car. In that case, the used ones will generally still have considerable life left to offer, making them ideal for energy storage purposes in, for example, buildings or in green energy production. Repurposing these batteries, therefore, mean that natural resources are conserved.

Martin says with Volvo Energy, Volvo will increase its focus on the business area. They also have an idea of giving batteries a second life, which is both a business opportunity and a way to contribute to creating a circular economy and a fossil-free society.

Joachim Rosenberg, member of the Volvo Group Executive Board and Chairman of UD Trucks, will head the new business area. Startingthis month,  he will lead the effort to create Volvo Energy while also continuing to run UD Trucks and preparing the transfer of UD Trucks ownership to Isuzu Motors as part of the previously communicated strategic alliance between the Volvo Group and Isuzu Motors.

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