- Volvo Technology of America receives $208 million grant from the Energy Department to accelerate U.S. electric truck production.
- Funding supports Volvo Group’s facilities in Pennsylvania and Virginia, advancing their transition to zero-emission manufacturing.
- Initiative aims to achieve Volvo Group’s goal of 100% fossil-free operations by 2040, creating 295 new union jobs and promoting sustainable transportation solutions.
$208M Grant Turbocharges Volvo U.S. Electric Truck Production
The U.S. Department of Energy has granted Volvo Technology of America $208 million to accelerate the production of heavy-duty electric trucks and associated powertrain components.
The funding will support Volvo Group’s Lehigh Valley Operations truck assembly site in Macungie, Pennsylvania, where Mack Trucks are produced, as well as its New River Valley truck location in Dublin, Virginia, which is Volvo’s largest truck manufacturing plant worldwide.
According to a project summary, the funding will aid in converting the facilities to zero-emission sites as part of Volvo Group’s aim to achieve 100% fossil-free operations by 2040. A Volvo spokesperson mentioned in an email that among these changes, the Hagerstown, Maryland, plant will receive upgrades to bolster its powertrain operations.
Stephen Roy, chairman of Volvo Group North America and president of Mack Trucks, said in a statement:
“Through facility upgrades and employee training, this grant will help our U.S. plants more efficiently produce the innovative trucks and zero-emission powertrain components essential to this transition.”
The funding, sourced from the Domestic Manufacturing Conversion grant program, will generate 295 new union jobs for Volvo and Mack. The program, which amounts to $2 billion and is accessible until September 30, 2031, is designed to promote domestic manufacturing of hybrid, electric, and hydrogen fuel cell vehicles, as detailed on a federal website.
The Department also awarded nearly $158 million to ZF Axle Drives Marysville. This funding aims to transform a section of its Marysville, Michigan facility from producing internal combustion engine driveline components to manufacturing EV components for potential new customers.
Cummins also plans to invest $75 million, matched by a corresponding amount, to convert around 360,000 square feet of an engine plant located in Columbus, Indiana. This initiative aims to reconfigure the facility for the production of zero-emission components and electric powertrain systems, according to a project summary.
In a significant boost for U.S. electric truck production, this funding is set to accelerate the shift towards zero-emission manufacturing at Volvo’s key sites, supporting their goal of achieving fossil-free operations by 2040. With the grant also creating 295 new union jobs, this initiative underscores a pivotal move towards sustainable transportation solutions in America’s manufacturing landscape.
