EIB Supports Volvo’s €420 Million Initiative for Cutting-Edge Electric Vehicle Platform

EIB Supports Volvo’s €420 Million Initiative for Cutting-Edge Electric Vehicle Platform ©Volvo Car Corporation

(IN BRIEF) Volvo Car Corporation has secured a €420 million loan from the European Investment Bank (EIB) to support the development of an all-electric vehicle platform. This financing covers research and development, software development, and advanced manufacturing technologies for electric vehicles. It aligns with Volvo’s goal to become a fully electric car manufacturer by 2030 while contributing to the reduction of emissions in road transport. The project aims to create safer and more sustainable electric vehicle technologies, including faster charging and reduced weight, to encourage broader electric vehicle adoption. Volvo Car Corporation has been headquartered in Gothenburg, Sweden, since 1927.

(PRESS RELEASE) LUXEMBOURG, 4-Jan-2024 — /EuropaWire/ — The European Investment Bank (EIB), the lending arm of the European Union, announces that Volvo Car Corporation has taken a significant step towards its commitment to a sustainable, all-electric future by signing a €420 million loan agreement. This financing will fuel the development of an innovative all-electric vehicle platform, underpinning Volvo’s strategic vision to become a fully electric car manufacturer by 2030, while simultaneously facilitating the widespread adoption of electric vehicles.

Aligned with the European Union’s ambitious green transition agenda, this financing agreement reflects Volvo Car Corporation’s dedication to reducing its carbon footprint and contributing to the decarbonization of the global road transport sector, a significant source of emissions and pollution.

The EIB’s funding will support various facets of Volvo’s electrification journey, including research and development, software development, and the implementation of state-of-the-art manufacturing technologies tailored for electric vehicles. With the EU’s stringent environmental regulations mandating emissions-free new passenger vehicles by the mid-2020s, this project aims to pioneer safer, more sustainable electric vehicle technologies, with a focus on reduced weight and faster charging capabilities. These advancements are poised to remove barriers to electric vehicle adoption, ultimately accelerating the transition to a cleaner transportation ecosystem.

EIB Vice-President Thomas Östros commented, “I think Sweden can be proud of the leading role Volvo Cars is taking in making the automotive industry more sustainable. Making cars that run on electricity instead of fossil fuels is only one part of the puzzle. The industry itself is still very carbon-heavy, something that Volvo Cars is actively working on changing. As the EU climate bank, this is one of the many facets in the green transition that we are financing, and we’re glad to partner with Volvo Cars to accelerate the change.”

Johan Ekdahl, CFO of Volvo Cars, emphasized the company’s long-term commitment to sustainability, stating, “Volvo Cars continues to work diligently towards the ambition of becoming a climate-neutral company by 2040. One way in which we are aiming to do that is by eliminating tailpipe emissions from our model line-up and investing towards becoming a fully electric car company by 2030. We have a long-term relationship with the EIB and are happy that they continue to support us on that exciting transformation journey.”

With its headquarters in Gothenburg, Sweden, Volvo Car Corporation has been a prominent player in the automotive industry since 1927.

Media contact:

Tim Smit
t.smit@eib.org
+352 4379 – 89076

Nikos Chrysoloras
n.chrysoloras@eib.org
+352 4379-83078

Press Office
press@eib.org

SOURCE: European Investment Bank