Global vehicle and equipment manufacturer Volvo Group (VG) has recently formalised a new business arm called Volvo Energy.
Joachim Rosenberg, member of the VG Executive Board and Chairman of UD Trucks, will head the new business venture.
Starting in February 2021, Rosenberg will lead the effort to develop Volvo Energy while also continuing to run UD Trucks and prepare for the transfer of UD Trucks ownership to Isuzu Motors as part of a strategic alliance between the Volvo Group and Isuzu Motors.
Primary goals of Volvo Energy are to strengthen the business flow of batteries over the life cycle as well as to enhance the charging infrastructure for customers.
At the same time, the company states, the environmental impact from electric and hybrid-electric commercial vehicles and machines will be reduced by giving used batteries a second life in different applications.
“There is a great and growing interest for electric vehicles and machines among our customers,” said VG President and CEO, Martin Lundstedt.
“This is of course very positive as it accelerates the transition towards more sustainable transport solutions.
“Our ambition is to offer our customers the most competitive solutions when it comes to electrification, including batteries and charging infrastructure,” he said.
“With Volvo Energy, we are taking a holistic view of the entire life cycle, which benefits both our customers’ businesses and society as a whole.”
According to a company statement, VG’s current offering of electric vehicles and machines encompasses trucks for waste management, construction and urban distribution, city buses, compact excavators and loaders.
The roll-out of additional electric vehicles and related services is set to continue apace and later this year, is expected to include heavy-duty trucks for regional transport and construction.
Volvo Energy will be a business area with full profit and loss responsibility. It will have both an internal role – providing batteries and charging solutions to VG’s other business areas – and an external role – offering used, remanufactured and refurbished batteries to customers for use across different applications.
Volvo Energy will also carry the Group’s responsibility for hydrogen infrastructure solutions for fuel cell electric vehicles.
According to Lundstedt, commercial vehicle batteries will be used for many years in the vehicle before they need to be replaced or remanufactured/refurbished.
However, if completely new batteries are fitted to the vehicle, the used ones will generally still have considerable life left to offer, which reportedly makes them ideal for energy storage purposes in, for example, buildings or for green energy production.
Repurposing these batteries therefore means that natural resources are conserved.
“With Volvo Energy, we are further increasing our focus on this important area. We are also giving vehicle batteries a second life, which is both a business opportunity and a way to contribute to the creation of a circular economy and a fossil fuel free society,” said Lundstedt.