Volvo Group has formed a new business division, Volvo Energy, to streamline electrification. They will look to bundle internal activities around energy and charging but also provide used batteries to external customers for energy storage solutions.
Volvo Energy concerns the entire battery life cycle and the customer offer for charging infrastructure. Simultaneously, Volvo says, the environmental impact from electric and hybrid-electric commercial vehicles and machines will be reduced by giving used batteries a second-life in different applications.
And there will be many. The company already offers electric vehicles and machines for a range of applications. In November, Volvo Trucks had announced to add battery-electric trucks to its complete model range in Europe starting this year. This includes electric trucks from 16 to 44 tonnes for logistics, waste management, regional transport and urban construction. In the latest announcement, Volvo also points to the roll-out of additional, electric vehicles and related services at a “high pace and later this year,” including heavy-duty trucks.
Volvo Energy will suitably report the financial results as part of the Truck segment and have full profit and loss responsibility. Joachim Rosenberg, member of the Volvo Executive Board and Chairman of UD Trucks, will head the new business area. Starting in February 2021, he will lead the effort to create Volvo Energy while also running UD Trucks.
Volvo Energy will also have Group responsibility for hydrogen infrastructure solutions. Here, Volvo says, collaborations with various business partners and actors across the ecosystem will be key. One of them is Daimler. The Volvo Group and Daimler Truck AG had agreed to establish a joint venture for the development, production and marketing of fuel cell systems ready for series production last November. Expect to see the first heavy-duty FCEVs around 2025.
Volvo Group is traded on the Stockholm Stock Exchange. The biggest investor is the Swedish investment group Industrivärden with China’s Geely of course also holding shares. Geely owns Volvo Cars entirely.