Volvo Cars is building a €1.2 billion electric vehicle manufacturing plant in Slovakia; third in Europe


Volvo Cars will build a third manufacturing plant in Europe, positioning the company to meet continued customer demand for electric cars and capture future growth potential.

The new factory will be climate-neutral and build only electric cars, supporting the company’s ambition to become fully electric by 2030 and climate-neutral by 2040, and to continue to expand its global production capacity to meet to its growth ambitions.

By choosing Slovakia as the site for its new plant, Volvo Cars is creating a European manufacturing triangle spanning its largest sales region, complementing the plant in Ghent (Belgium) in Western Europe and the plant in Torslanda (Sweden ) in Northern Europe.

The new facility represents an investment of approximately 1.2 billion euros; Volvo expects around 20% to be funded through government support. The plant will be located near Kosice in the eastern part of Slovakia, where it will benefit from a well-established automotive supply chain as it will become the country’s fifth automotive plant.

Volvo Cars aims to reach annual sales of 1.2 million cars by the middle of the decade, a target it aims to achieve with a global manufacturing footprint spanning Europe, the United States and Asia.

Construction of the Kosice plant is scheduled to start in 2023, with equipment and production lines installed in 2024. Mass production of next-generation purely electric Volvo cars is scheduled to start in 2026.

In line with Volvo Cars’ ambition to have climate-neutral manufacturing operations by 2025, the plant will only use climate-neutral energy. It will also be designed to be a leader in the production of sustainable and efficient premium electric cars with optimized layout and logistics flow, while Volvo Cars aims for the highest global standards in energy and environmental efficiency.

Location-wise, Kosice offers good logistics and transport links to the rest of Europe and access to a good supplier base. The incentives offered by the Slovak government were also a key factor in the decision to locate the factory in Kosice.

The facility is designed to produce up to 250,000 cars per year and is expected to create several thousand new jobs in the region. The site also allows for future plant expansion.

The establishment of the Kosice plant represents the first new European manufacturing site for Volvo Cars in almost 60 years. The Torslanda factory was opened in 1964, while the Ghent factory followed a year later. Together, these facilities can produce 600,000 cars per year.

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