Truck Maker Volvo Delays Construction of Battery Plant in Sweden

By Dominic Chopping

STOCKHOLM--Swedish truck maker Volvo is delaying the construction of a new large-scale battery production plant as it tries to balance the ramp-up of capacity with demand.

The news comes days after Swedish battery maker Northvolt announced job cuts while it scales back its operations amid a cooling global electric-vehicle market.

Volvo has been quick to build a portfolio of electric trucks ahead of tougher European carbon-dioxide regulations for heavy vehicles in 2025 and 2030, while it has also developed a range of electric construction equipment to cater to zero-emission requirements at some construction sites.

Though its Volvo branded electric trucks hold a significant 56.9% market share in Europe, overall global orders for its electric heavy-duty trucks have fallen for five consecutive quarters, with the company noting recently that further adoption is dependent on expanding necessary infrastructure such as charging as well as incentive programs.

The company said two years ago that it would build a new battery production plant in Sweden to meet growing demand for its electric vehicles, with construction expected to start in 2025. However, the start date has now been pushed back by between 12 and 24 months.

"We are looking over the timing for this construction in order to safeguard that we ramp up own production of cells in sync with the pace of increasing demand," a company spokesperson said.

"If and how this will affect the overall project remains to be seen."

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

September 13, 2024 06:44 ET (10:44 GMT)

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