Volvo CE Unveils New Battery Pack Production Facility in Changwon

Volvo Construction Equipment (Volvo CE) has officially opened a state-of-the-art battery pack production facility at its Changwon plant in Korea. This new facility is set to produce advanced battery solutions for the Volvo Group, marking a significant milestone in the company’s journey towards sustainable and electric construction machinery.

The grand opening ceremony, held on May 15, 2024, saw the participation of Volvo CE employees, key suppliers, and prominent members of the Executive Management Team (EMT). The event celebrated the culmination of a SEK 80 million ($7.8 million) investment, highlighting Volvo CE’s commitment to innovation in the construction, mining, earthmoving, and heavy equipment industries.

Spanning 2,500 square meters, the new facility integrates seamlessly into the existing component workshop at Changwon. It boasts dedicated assembly and logistics areas designed to enhance production efficiency and support Volvo CE’s expanding electric equipment lineup. Mass production of the battery packs commenced on April 23, with these high-performance packs set to power the new EC230 Electric excavator, a 23-ton machine poised to redefine industry standards.

Andrew Knight, Head of Excavator Industrial Strategy and Managing Director of Volvo Group Korea, expressed his excitement about the new facility: “We’re thrilled to open our new battery-pack production facility, the first in Volvo CE. In April 2022, we established a mass production line for electric excavators, and with the completion of this new facility, we can now produce them in-house, from batteries to finished products, saving time and logistics costs. A big thank you to our employees, many of whom have undergone rigorous training and are now ready to help us take this next step on our transformation journey.”

The inauguration was also attended by Acting Head of Changwon Operations Yang Hakyong, Kamel Sid (Head of Operations), and Mats Sköldberg (Head of Technology), alongside representatives from Volvo Powertrains and Volvo Trucks Korea. The ceremony concluded with the unveiling of the first battery pack produced at the new facility, symbolizing the beginning of a new era for Volvo CE.

Changwon’s strategic location near key battery module suppliers and other essential partners in South Korea makes it an ideal hub for battery pack production. The proximity to these suppliers will streamline the supply chain and reduce logistics costs, further enhancing Volvo CE’s operational efficiency.

Kamel Sid, Head of Operations at Volvo CE, emphasized the importance of this development: “The investment in our facilities is an important part of our strategy to drive the transformation towards more sustainable solutions and to help us meet our Science-Based Target commitments. We have an ambition to be fossil-free and for 35% of our machine sales to be electric by 2030. We see increasing demand from our customers for more sustainable solutions, and we are committed to meeting this demand by adapting our production for electric machines.”

Volvo CE’s new Changwon facility is a testament to the company’s dedication to sustainability and innovation in the heavy equipment industry. For more information on Volvo CE’s latest advancements and their journey towards electrification, visit Awesome Earthmovers.