Volvo creates new division to accelerate electrification, reuse batteries

London — The Volvo Group has created a new Volvo Energy division to accelerate electrification, as well as reusing batteries in different applications.

The carmaker said Jan. 28 that the new division would strengthen its business flow of batteries over the life cycle, as well as the customer offer for charging infrastructure, while also reducing the environmental impact from electric vehicles, hybrid EVs and machines by giving used batteries a second life in different applications.

Volvo Energy will provide batteries and charging solutions to the group's other business areas, while also offering used, remanufactured and refurbished batteries to external customers for use across different applications.

The company added that the new division would also carry the responsibility for hydrogen infrastructure solutions for fuel cell EVs, with collaborations with various business partners and actors across the ecosystem to be key.

Volvo Group CEO Martin Lundstedt noted the growing interest for EVs and described it as a positive, accelerating the transition towards more sustainable transport solutions.

"Our ambition is to offer our customers the most competitive solutions when it comes to electrification, including batteries and charging infrastructure. With Volvo Energy, we are taking a holistic view of the entire life cycle, which benefits both our customers' business and society as a whole," Lundstedt said.

Volvo explained that when EVs require replacement batteries, if completely new batteries are fitted, the used ones would generally still have considerable life left, making them ideal for energy storage purposes in, for example, buildings or in green energy production, allowing Volvo Energy to conserve natural resources by repurposing the batteries.

"With Volvo Energy, we are further increasing our focus on this important area. We are also giving vehicle batteries a second life, which is both a business opportunity and a way to contribute to the creation of a circular economy and a fossil free society," Lundstedt said.