According to Electrive, the city of Mariestad can be the location of the upcoming battery plant, as the city is in proximity to Skövde, another city where the Swedish company makes its powertrains.

Volvo also hopes to be able to use the existing infrastructure and the renewable energy from the region.

Also, the company's headquarters and R&D centers are just two hours away, in Gothenburg.

Martin Lundstedt, President and CEO of the Volvo Group, said that "there is a strong demand from our customers already today, and by 2030, it is our ambition that at least 35% of the products we sell are electric."

"This ramp-up will require large volumes of high-performing batteries, produced using fossil-free energy, and it is a logical next step for us to include battery production in our future industrial footprint", he added.

Back in May, Volvo Trucks opened a battery plant in Belgium to help with the company's plans to build greener commercial vehicles.

Volvo Group officials stated that vehicle series production is scheduled to start in Gothenburg in Q3 2022.