Volvo Construction Equipment (Volvo CE) will invest SEK 65 million ($6.3 million) into the production of electric wheel loaders from its plant in Arvika, Sweden. The Arvika factory specializes in the production of medium and large wheel loaders and has already been successful in driving down its carbon emissions.

A milestone in the company’s ambition to be entirely fossil free by 2040, the move will also go a long way to fulfilling Volvo CE’s aim for 35% of machines sold to be electric by 2030.

The investment from Volvo Group will allow the Arvika factory in Sweden to expand its facilities with a new building and allow for the phased introduction of new electric wheel loaders.

News of the investment came soon after an announcement to invest in electric haulers from the company’s production facility in Braås, Sweden. These announcements are part of an investment strategy that allows Volvo CE to advance electric solutions across its production facilities, including also the Konz facility in Germany, Belley in France and Changwon in South Korea, where other electric machines are made.

Volvo CE has already successfully introduced compact electric wheel loaders to the global market with the L20 Electric and L25 Electric wheel loaders proving to be efficient, zero-exhaust emission solutions capable of driving down carbon emissions while maintaining high productivity across a variety of customer applications. Together with the ECR25 Electric, ECR18 Electric and EC18 Electric compact excavators and the mid-size EC230 Electric excavator, Volvo CE has one of the largest electric ranges on the market.

L25 electric wheel loader

With the investment, Arvika will erect a new building, approximately 1,500 sq m, which will allow the facility to free up areas inside its assembly factory to be able to build electric wheel loaders. While it has not yet been announced which models will begin their electric transformation and exactly when, production of both electric wheel loaders and more traditional wheel loaders fitted with combustion engines will continue for now on the same production line.

Volvo CE will ensure a phased introduction model by model, taking into account all aspects of the electric ecosystem as it does so, including infrastructure requirements, charging solutions, battery handling and business models.

Building work is set to begin later this year, with further announcements on when production will begin to come.