Volvo Group Invests 10 Billion Won to Expand Domestic Electric Battery Pack Production

Responding to Asia-Pacific Region Demand with Domestic Battery Pack Production

[Asia Economy Reporter Kim Pyeonghwa] Volvo Group announced on the 21st that it will establish an approximately 760-pyeong electric battery pack production line at the Volvo Construction Equipment Changwon plant. To prepare for the demand for next-generation electrified equipment and enhance production capacity, the company will invest about 10 billion KRW (7.8 million USD) in the line.

The Changwon plant is the excavator production facility of Volvo Construction Equipment Group and is the largest within the group. It is also a key production base that manufactures 55% of the world's Volvo excavators. Volvo Group Korea plans to build a battery pack production facility at the Changwon plant by June next year and respond to the demand for electrified equipment in the Asia-Pacific region in the future.

The newly established battery pack production line at the Changwon plant will be located on a site of about 760 pyeong within the component production facility. It will serve not only to produce electric battery packs but also to manufacture and distribute various electric fuel solutions. Volvo Group Korea plans to start construction of the battery pack production line in April, complete it by June next year, and begin mass production of products.

Volvo Group Changwon Plant Overview /
[Photo provided by Volvo Group Korea]

Andrew Knight, CEO of Volvo Group Korea and Head of Excavator Operations at Volvo Construction Equipment, said, "Following the recent completion of the electric excavator mass production line, we are pleased to make another important leap in line with Volvo Construction Equipment's electrification vision," adding, "We will respond to construction equipment demand at the forefront of the industry through the Changwon plant."

Meanwhile, Volvo Construction Equipment launched the 2.5-ton class 100% electric excavator 'ECR25 Electric' in the Korean market last year, the first in the Asia region. Additionally, it succeeded in mass-producing the 22-ton class large electric excavator model 'JEC230E' domestically and exported 35 units to Norway.