Volvo Car Group has announced that it will build its third production plant in Slovakia, near Košice. The investment, set to be completed by 2024, will amount to €1.2 billion. The production plant will specialise in the production of electric vehicles, thus contributing to Slovakia’s e-mobility aspirations to become a leader in the segment.
Volvo currently has two European factories, one in Ghent in Belgium and one in Torsland in Sweden. The plant in Slovakia will be constructed in Valaliky Industrial Park near Košice. Its capacity will be 250,000 vehicles per year. It will employ approximately 3,300 people. With construction to start in 2023, production will commence in 2026.
Volvo Cars aim to produce 1.2 million cars by mid-decade. They will facilitate a global manufacturing footprint spanning Europe, the US and Asia.
A future marked by e-mobility
Slovakia has by far the highest production of battery-powered electric vehicles in Europe, with 25 BEVs produced per thousand inhabitants in 2025. Furthermore, 11 electric and plug-in hybrid models of eight automotive brands, including Land Rover, Porsche and Audi, are produced in Slovakia. One Slovakian company, in particular, has further solidified the country’s status as an automotive paradise. InoBat specialises in battery production with the long-term objective of serving the European market with new energy solutions.
Slovakia thus seems set for a bright automotive future. Unsurprisingly, the industry is a driving force for the Slovak economy, accounting for 13% of its GDP. The country manufactures the highest number of vehicles per capita in the world.