Swedish automaker Volvo has entered into a €420 million ($460 million) financing agreement with the European Investment Bank (EIB) as part of its commitment to achieving a fully electric lineup by 2030. The funds will be dedicated to developing a new electric vehicle (EV) platform for the automaker's next-generation models.
The financing will support research and development efforts associated with the new EV platform, as well as the implementation of advanced manufacturing technologies for an efficient production rollout.
Volvo's early commitment to transitioning entirely to electric vehicles has positioned it as a frontrunner in the automotive industry's sustainable evolution.
Henrik Green, Volvo's Chief Technology Officer, declared in 2021 that there is “no long-term future for cars with an internal combustion engine.” This strategic move is reflected in Volvo's optimistic sales outlook, anticipating strong double-digit growth in EV sales for the current year.
The automaker's portfolio includes popular EV models such as the C40 compact SUV and the newly introduced EX30 crossover, designed to appeal to younger buyers with a blend of performance and Scandinavian design. Volvo's commitment to electrification extends to its pricing strategy, with the EX30 targeting a starting price of around $35,000.
Volvo's ambitious plans include the launch of its first three-row electric SUV, the EX90, offering up to 300 miles of range and set to enter the market early this year at a starting price of $76,695 in the US. By 2025, Volvo aims to sell approximately 600,000 EVs, constituting half of its total projected vehicle sales of 1.2 million units. The company remains focused on introducing two new EVs in key segments this year to further accelerate its momentum in the electric vehicle market.