Volvo has announced plans to build a battery assembly plant in the U.S. The plant will help support the brand’s bold electrification plans, including assembling a battery for an electric version of the XC90 crossover.
The plant is part of a planned $600 million investment Volvo is making into its Ridgeville, South Carolina assembly plant, according to Automotive News. The investment includes adding a second assembly line to the plant that currently produces the Volvo S60.
Volvo says the battery assembly line will initially assemble and test lithium-ion battery packs for the next-generation XC90 crossover. With the announcement Volvo is confirming it will offer a pure electric version of the next XC90 in 2022.
The next XC90 will be built atop an updated version of Volvo’s Scalable Product Architecture, referred to as SPA2.
Adding the battery assembly plant to the Ridgeville complex will create an additional 1,000 jobs. The plant currently employs 1,500 people.
Once Ridgeville starts churning out battery-electric XC90’s, it will mark the brand’s third battery-electric model. Ultimately Volvo wants half of its global sales to come from battery-electric models by 2025. In order to achieve that goal Volvo will rollout a new electric vehicle every year between now and 2025.