EIB helps Volvo build electric cars

Volvo Cars will get a EUR 420 million loan from the European Investment Bank (EIB) to develop a new electric car platform. The two parties have signed a financing agreement to that end to decarbonise transport in the EU and help Volvo reach its goal of manufacturing EVs only by 2030.

The EIB funds will support the development of a new all-electric car platform, the necessary research and development, and help with the “roll-out of resource-efficient, advanced manufacturing technologies for electric cars.”

According to an EIB media statement, the project aims to finance “a just and swift transition to a net-zero economy, both in Europe and across the world.” It will also help advance EV technology, making it safer and more sustainable, reducing the weight of electric cars, and implementing faster charging technology.

“I think Sweden can be proud of the leading role Volvo Cars is taking in making the automotive industry more sustainable. Making cars that run on electricity instead of fossil fuels is only one part of the puzzle,” says EIB Vice-President Thomas Östros. “The industry itself is still very carbon-heavy, something that Volvo Cars is actively working on changing. As the EU climate bank, this is one of the many facets in the green transition that we are financing, and we’re glad to partner with Volvo Cars to accelerate the change.”

“Volvo Cars continues to work diligently towards the ambition of becoming a climate-neutral company by 2040. One way in which we are aiming to do that is by eliminating tailpipe emissions from our model line-up and investing towards becoming a fully electric car company by 2030,” CFO of Volvo Cars Johan Ekdahl.

eib.org