“We transition towards sustainable foundry operations by electrifying key processes and integrating AI technologies, reducing CO₂ emissions by 88% from our manufacturing process. This project is a vital part of Volvo Group’s journey towards net-zero emissions.” says Rickard Lundberg, Vice President Powertrain Production Skövde Plant.
The initiative is an ambitious transformation project aiming for significant reduction of CO₂ emissions from manufacturing processes within Skövde Plant. With support from the EU, the plant will become a pioneering example of decarbonized heavy manufacturing.
Driving Industry Leadership in Sustainability
Central to this transformation is the integration of green technologies, including:
The project will also introduce three innovative solutions for energy storage, allowing the plant to balance energy use and production.
Together, these systems will allow the plant to balance energy use and production, improving operational flexibility while addressing grid capacity limitations that many large-scale electrification projects face.
The Skövde plant is conditionally granted up to €49M by Innovation Fund, European Commission. The project is preceded by a prestudy conducted together with Skövde Energi and AI Sweden, funded by Advanced Digitalization through Vinnova.
June 24, 2025
For more information, contact:
Rickard Lundberg
VP Powertrain Production Skövde Plant
rickard.lundberg@volvo.com
+46 790 62 43 78
Maria Hillerström
Manager Communication Strategy Skövde Plant
maria.hillerstrom@volvo.com
+46 735 58 84 97
Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Climate, Infrastructure and Environment Executive Agency (CINEA). Neither the European Union nor the granting authority can be held responsible for them.
Funded by the European Union
Emission Trading System
Innovation Fund
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The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers’ uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs more than 100,000 people and serves customers in almost 190 markets. In 2024, net sales amounted to SEK 527 billion (EUR 46 billion). Volvo shares are listed on Nasdaq Stockholm.
