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Prince Carl Philip, Princess Sofia, Mikael Liljestrand, Melker Jernberg, Maria Andrén and Governor of Värmland Georg Andrén. Photo: Volvo CE

The 1,500m² building cost US$6.3 million and is located at the company’s site in Arvika, Sweden. It will allow the site to free up areas inside its existing factory for the production of electric wheeled loaders.

Designated an after-flow facility, it is where wheeled loaders will come for the final stage in the production process and where visitors can test drive the latest machines fresh from the assembly line.

Prince Carl Philip, a member of the Swedish Royal Family, toured the new facilities and tested out the Volvo L110, one of the wheeled loaders being produced there.

Volvo CE has stated that its goal is to be entirely fossil free by 2040 and achieve 35% electric machine sales by 2030.

Melker Jernberg, Head of Volvo CE, said, “This new facility is an inspiration for a future built on sustainable solutions. We are proud to be at the forefront of industry change with large-scale investments, not just here in Arvika but around the globe, that support a transformation towards electrification. Together, we are moving closer towards fossil-free machines.”

Volvo CE says that Arvika has already moved to reduce its internal climate footprint by 350 tons of CO2 through a variety of emission reduction efforts in recent years.