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EIB Lends €500 Million to Volvo for Research in Innovative Electric Vehicle Technologies

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EIB Lends €500 Million to Volvo for Research in Innovative Electric Vehicle Technologies

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  • EIB lends €500 million to Volvo Group in Sweden.
  • The EIB loan will support research, development and innovation investments in electric vehicle technologies, active and passive safety and autonomous driving technologies, as well as non-powertrain related energy efficiency improvements.
  • The project will lead to around 900 jobs in research and development in Europe, primarily in Sweden and France, and a gradual decarbonisation of the automotive industry

The European Investment Bank (EIB), the EU climate bank, is a leading financier and catalyst for technological progress, competitiveness, and research, development and innovation in Sweden and in the European Union. This RDI project by Volvo is backed by the EIB as it will support the decarbonisation and electrification of heavy-duty commercial vehicles, including the electrification of fleets, the rollout of high-performance charging networks, and the development of hydrogen fuel cell technology and infrastructure. It will focus on the electrification of commercial vehicles, which is still at a very early stage with much lower penetration levels than for passenger cars and light commercial vehicles. The project will not only contribute to decarbonising the transport sector and reducing emissions by motor vehicles, but also to enhancing the safety of vehicles and developing a more efficient and sustainable European transport system.

EIB Vice-President Thomas Östros, responsible for Sweden, said:

“We are pleased to support AB Volvo — a Swedish and global market leader in heavy-duty vehicle manufacturing — to promote a paradigm shift in innovative and clean technologies within the transport sector. Volvo’s RDI projects will bring us one step closer to a low-carbon economy. Thereby pushing the boundaries for the automotive industry in Europe to identify cleaner, safer and smarter solutions, which will benefit us all.”

See related article: EIB and UNDP Put €300 Million Toward Helping Ukraine Rebuild Sustainable and Energy-Efficient Buildings

President and CEO of Volvo Group Martin Lundstedt said:

“The necessary transformation of the transport and infrastructure industry into sustainable solutions is urgent. We are leading the transformation today, but want to further accelerate our research and development within electromobility, safety solutions and autonomous transport solutions. With the EIB’s collaboration, this acceleration can continue.”

Supporting EU Innovation and Climate Goals

The scope of the project is consistent with the Bank’s Climate Bank Roadmap objectives and the EIB’s Public Policy Goal “Innovation; Digital and Human Capital”. Moreover, the project supports the EU policy priorities under Horizon Europe Pillar 2 (Climate, Energy and Mobility — Smart Mobility). Lastly, Volvo Group’s pathway to reach the goals of the Paris Climate Agreement has been validated by the Science Based Targets initiative (SBTi), confirming that the Group’s climate targets are in line with what the latest climate science deems necessary to keep global warming at bay.

Source: EIB

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