Volvo Electric Trucks Spark Expansion: Starts Serial Production In Ghent

Volvo AB VLVLY Volvo Trucks is ramping up electric truck volumes and starting serial production of heavy battery electric trucks at the Ghent factory in Belgium. 

Ghent is the fourth Volvo Trucks factory to produce battery electric trucks. First out was Blainville in France, then at New River Valley (U.S.), following the establishment of the Tuve plant in Sweden.

The Ghent factory is the largest Volvo Trucks production site, boasting a staggering yearly capacity of 45,000 trucks.

Three electric models will be built in Ghent – the Volvo FH, the Volvo FM, and the Volvo FMX Electric.

These trucks can operate at a total weight of 44 tonnes (gross combination weight) and can be adapted for various transport needs. 

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So far, Volvo Trucks has taken orders, including letters of intent to buy, for around 6,000 electric trucks in 42 countries on six continents.

The electric trucks are assembled on the same platform and line as the diesel and gas-powered trucks. The battery packs will be sourced from the newly inaugurated battery assembly facility adjacent to the manufacturing line in Ghent.

Volvo's Electrification Drive: Main Path To Zero Emissions

"Just a few years ago, many thought it was impossible to electrify heavy truck transport," said Roger Alm, President of Volvo Trucks. 

"But we decided early on that electrification is our main path to zero emissions. Now we can offer an industry-leading range of purpose-built electric trucks in commercial operation all around the world," Alm added.

Steel is one of the primary materials in manufacturing trucks, buses, and construction machines, the company said. 

Volvo has collaborated with H2 Green Steel for near-zero emission steel, taking another step towards a net zero GHG emission value chain by 2040. 

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Under the long-term agreement, Volvo Group will purchase near zero emission steel from H2 Green Steel's new plant in Boden in Northern Sweden.

The start of production is planned for the end of 2025, with deliveries to Volvo Group starting in mid-2026. 

Price Action: VLVLY shares closed lower by 1.01% to $19.87 on Wednesday.

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