Volvo invests $1.1 billion in Torslanda plant to manufacture electric vehicles

Volvo announced today that it will invest SEK 10 billion ($1.09 billion at current exchange rates) over the coming years in its Torslanda manufacturing plant in Sweden. The money will be used to prepare the site to build the brand’s next generation of electric vehicles.

As a result of these expenditures, Volvo will not only install battery manufacturing facilities and reduce energy consumption in its paint shop, but it will also introduce a mega casting site for aluminum body parts.

“With these investments, we are taking an important step towards our all-electric future and preparing for even more advanced and better electric Volvos,” said CEO Håkan Samuelsson. “Torslanda is our largest factory and will play a crucial role in our ongoing transformation as we strive to become an all-electric carmaker by 2030.”

Also read: Volvo’s new battery factory in Gothenburg will be powered by renewable energy

The introduction of mega casting to the site is the most exciting part of the factory update, Volvo says, as it will allow the automaker to cast key parts of the floor structure of its upcoming vehicles at from a single piece of aluminum. This improves the energy efficiency of parts production and decreases their weight, allowing electric vehicles to go further. It also simplifies the manufacturing process, which saves money.

The floors will then be integrated with battery cells in another new section of the plant. The cells, meanwhile, will be manufactured in Gothenburg at a new factory announced by Volvo last week.

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

The plant, opened in 1964, has an annual production capacity of 300,000 vehicles. Volvo did not say when this work will be completed.

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