Volvo to build EV plant in Slovakia

Bloomberg

Volvo Car AB plans to build a $1.3 billion electric-vehicle factory in Slovakia, the company said.
The new plant will be able to produce 250,000 electric cars per year, part of the company’s goal of reaching annual sales of 1.2 million cars by 2025 and switching its entire lineup to battery-powered vehicles by the end of the decade.
“Expansion in Europe, our largest sales region, is crucial to our shift to electrification and continued growth,” Chief Executive Officer Jim Rowan said.
The investment also opens the possibility to build a battery plant nearby to feed directly into the EV production facility, Rowan said at a news conference following the announcement.
Slovakia is among the most productive countries in the world for car manufacturing. It “offers good logistical and transport links to the rest of Europe and access to a good supplier base,” Volvo said in the statement.
Government incentives were “a key factor” in the decision to locate the plant near Kosice, in the eastern part of the country. Around 20% of the investment is expected to be funded by the government support, according to the
statement.
Volkswagen, Kia, Stellantis and Jaguar Land Rover Automotive together already produce roughly 1 million cars per year in the western, more industrialised region of Slovakia.
“This investment is a huge milestone for us, because the eastern part of the country has been suffering from the emigration.” Prime Minister Eduard Heger said in Bratislava, while presenting the deal. “We hope more people will now decide to return home.”
Construction is scheduled to begin in 2023, with equipment and production lines installed the following year. Series production of electric cars is scheduled to start in 2026. The plant should create around 3,300 new jobs.
For Volvo Cars, controlled by Zhejiang Geely Holding Group Co., the plant will be its third in Europe.