Volvo Car Corporation is set to fully embrace electric vehicle (EV) technology with a significant EUR420 million (USD459.6 million) loan from the European Investment Bank (EIB). This strategic move aligns with Volvo’s goal to transition to a fully electric car manufacturer by 2030 and supports the broader European Union initiative for a greener future.

The loan will fuel Volvo’s development of a new all-electric vehicle platform, encompassing research and development, software innovation, and the integration of cutting-edge manufacturing technologies for electric vehicles. This initiative is a key component of Volvo’s strategy to not only go fully electric but also to make e-vehicles more accessible to consumers.

EU’s green transition endorsement

In line with the EU’s commitment to environmental sustainability, the collaboration between Volvo Car Corporation and the EIB marks a significant step towards reducing carbon emissions in road transport. The EU’s stringent environmental regulations for road transport aim to ensure all new passenger vehicles sold are emissions-free by the mid-next decade.

The project promises to deliver safer and more sustainable e-vehicle technologies, focusing on reduced weight and faster charging capabilities. These advancements are expected to lower the barriers to electric car ownership, aligning with the EIB’s mission to finance a just and rapid transition to a net-zero economy globally.

EIB Vice-President Thomas Östros praised Volvo Cars for its leadership role in the automotive industry’s sustainability efforts. He emphasised the importance of not only transitioning to electric vehicles but also addressing the carbon-heavy nature of the industry itself. Johan Ekdahl, CFO of Volvo Cars, reiterated the company’s commitment to becoming climate-neutral by 2040 and expressed gratitude for the EIB’s continued support in their transformation journey.

The European Investment Bank, as the EU’s long-term lending institution, plays a pivotal role in supporting EU policy goals through strategic investments.

Volvo Car Corporation, with a rich history since 1927, is headquartered in Gothenburg, Sweden. Volvo Cars is owned by Zhejiang Geely Holding Group, a Chinese multinational automotive company. Geely acquired Volvo Cars from Ford Motor Company in 2010. Since then, Volvo Cars has operated as a separate entity under Geely’s ownership, maintaining its distinct brand identity and operational independence.