Sweden: Coordinator to help when establishing large plants for green transition of automotive industry

SWEDEN, August 16 - Vehicle manufacturers are currently investing heavily in battery development and production. These plants will create many new jobs but require infrastructure, housing, energy supply, etc. A coordinator will be appointed to help when establishing large plants for the green transition of the automotive industry

Swedish vehicle manufacturers are investing heavily in establishing plants,

primarily for battery development and production. Examples of such large plants are the Volvo Car Group’s and Northvolt AB’s joint gigafactory and battery research and development centre in Gothenburg, Scania AB’s battery facility in Södertälje and the Volvo Group’s battery factory in Mariestad.

“These investments create thousands of new jobs and are vital to Sweden as a vehicle-manufacturing country. Establishing large plants require a lot from society. The Government will therefore appoint a coordinator tasked with coordinating various initiatives needed to help bring about new plants in the vehicle industry, primarily in battery production,” says Minister for Business, Industry and Innovation Karl-Petter Thorwaldsson.

The investments, which are expected to be of historical magnitude over a limited period, involve complex challenges in matters such as infrastructure, innovation, energy supply, permits, skills supply and access to housing in the relevant municipalities and regions. The coordinator will help create good conditions for realising vehicle manufacturers’ key investments when establishing new plants. The coordinator will identify challenges and obstacles, inform relevant actors of these and facilitate cooperation between actors.

The establishment of the vehicle industry’s large plants and extensive investments were deciding factors in today’s decision. The vehicle industry welcomes the appointment of a coordinator:

“Scania’s goal is to lead the electrification of heavy vehicles, and the billions we have invested in the battery assembly plant in Södertälje – which will be completed next year – is an important part of this. The entire industry faces a massive transition and Swedish battery cell production is crucial. But this requires coordination and close cooperation between policy and the business sector. The Government’s initiative of appointing a national coordinator is therefore incredibly welcome,” says CEO of Scania and TRATON Christian Levin.

“Appointing a national coordinator is both wise and welcome. The Volvo Group wants to accelerate the transition to sustainable transport and infrastructure systems, and battery cell production is an important part of this. Having a coordinator for this growing industry will be helpful in the establishment processes now going on in many places in Sweden,” says CEO and President of the Volvo Group Martin Lundstedt. 

The coordinator will be appointed shortly and will continually provide the Government Offices (Ministry of Enterprise and Innovation) with information on how the remit is progressing. The coordinator will submit a final report by 31 December 2024.