Volvo Cars recently announced that it will become a fully electric car manufacturer by 2030.
In a press release, the company announced that it is also committed to becoming a worldwide leader in premium electric cars, one of the fastest-growing electric vehicle (EV) industry segments.
When it reaches an all-electric-car status, the company will only sell fully electric cars. It also intends to gradually phase out all its vehicles that use internal combustion engines, including hybrid vehicles, which use a mix of electricity and gasoline to power engines.
Why make such a commitment to electric cars? The company notes that it's basing the decision on shifting demand and a commitment to better climate protection.
Volvo Commitment to Environmental Change
Volvo Cars announced in 2019 that it aimed to be carbon-neutral by 2040 and plans to reduce its overall carbon footprint by 40 percent by 2025.
In line with the global Paris climate accord of 2015, the plan goes beyond reducing tailpipe emissions. The company's plan includes a commitment to electrification and addressing carbon emissions throughout its supply chain, manufacturing network, recycling, and broader operations.
Volvo Cars expects that there will be rapid growth in legislation that governs emissions and encourages a shift to electric vehicles. The company also anticipates growth in the infrastructure to support and provide accessible, high-quality charging technologies.
Collectively, the company anticipates an increase in consumer acceptance and demand for fully electric cars.
The announcement accelerates Volvo Cars' commitment to electric cars. The company has seen a high demand for electric vehicles in recent years and believes the market will continue to grow as internal combustion engines continue to shrink.
New Models to Add to Existing XC40 Recharge
In 2018, Volvo Cars launched the XC40 Recharge, the company's first fully electric car in markets worldwide. Earlier this year, Volvo unveiled a second fully electric car as part of its 40 series. The company projects the new concept car will be available within three years.
Soon, Volvo Cars is planning to launch additional new electric models. By 2025, the company expects 50 percent of its global sales to be fully electric vehicles, with the remainder as hybrid models. By 2030, all of its car sales will be fully electric.
Volvo projects sales will 600,000 of its newly announced fully electric car by the middle of the decade. The company is planning to build a battery manufacturing plant by 2026 in Europe to support the shift. It has partnered with Northvolt, a Swedish company, on new battery technology. The new batteries, slated to be ready by 2025, would allow for longer mileage – up to 625 miles – between charges.