The European Investment Bank (EIB) has announced it has signed a €420m financing agreement with Volvo Car Corporation to help create a fully electric Volvo car platform.
The sizeable loan agreement will support Volvo in its vision to become an entirely electric car manufacturer by 2030, becoming carbon neutral.
The endeavour not only aligns with the company’s goal of a fully electric Volvo car range but also the European Union’s target of accelerating the green transition.
It is believed the initiative will significantly contribute to European road transport decarbonisation, a major contributor to emissions and pollution.
EIB Vice-President Thomas Östros emphasised the exciting potential of the project: “I think Sweden can be proud of the leading role Volvo Cars is taking in making the automotive industry more sustainable.
“Making cars that run on electricity instead of fossil fuels is only one part of the puzzle. The industry itself is still very carbon-heavy, something that Volvo Cars is actively working on changing.
“As the EU climate bank, this is one of the many facets in the green transition that we are financing, and we’re glad to partner with Volvo Cars to accelerate the change.”
How will the funding help Volvo go fully electric?
The EIB’s funding will aid in developing a new, entirely electric Volvo car platform while supporting crucial research, development, and implementation of eco-friendly, cutting-edge manufacturing methods for electric cars.
The European Union has been enforcing increasingly strict environmental rules for road transport, aiming to ensure that all new passenger vehicles sold emit no emissions by the middle of the next decade.
CFO of Volvo Cars Johan Ekdahl commented: “Volvo Cars continues to work diligently towards the ambition of becoming a climate-neutral company by 2040.
“One way in which we are aiming to do that is by eliminating tailpipe emissions from our model line-up and investing towards becoming a fully electric car company by 2030.
“We have a long-term relationship with the EIB and are happy that they continue to support us on that exciting transformation journey.”
Optimising electric vehicle architecture
Anticipated outcomes of this project include the advancement of safer and more sustainable technologies for electric vehicles.
This encompasses weight reduction and quicker charging capabilities, potentially reducing obstacles to purchasing electric cars. Consequently, this initiative aligns perfectly with the EIB’s objective to finance a smooth and fair shift towards a net-zero economy, both within Europe and globally.
