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Released June 24, 2019 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Europe's first large-scale lithium-ion battery factory has secured $1 billion in equity from a group led by Volkswagen (VW), Goldman Sachs and BMW, which will see work on the planned facility start in August in Skellefteå, Sweden.
The Northvolt Ett plant, which will be similar to Tesla's "gigafactories" in the U.S., is being developed by Northvolt (Stockholm, Sweden) and will have an initial capacity of 16 gigawatt-hours (GWh) of battery capacity--approximately 250,000 electric vehicles (EV) batteries per year. The plant will then be expanded to 32 GWh. Northvolt, formerly SGF Energy AB, was formed by two former Tesla senior executives Peter Carlsson and Paolo Cerruti. Northvolt has already secured a number of supply agreements with a combined order value of more than $13 billion through 2030.
"Today is not only a great milestone for Northvolt, it also marks a key moment for Europe that clearly shows that we are ready to compete in the coming wave of electrification, and that we will do so using battery cells which carry the lowest CO2 footprint possible," said Peter Carlsson, co-founder and chief executive officer of Northvolt.
In addition to the financing, VW will take a 20% stake in Northvolt and the companies have agreed to establish a 16-GWh battery cell gigafactory in Germany, somewhere in Lower Saxony. Construction of the production facility is scheduled to start, at the earliest, in 2020. Battery cell production for VW is slated to commence around the end of 2023 or beginning of 2024. VW has a very ambitious car electrification strategy, and its annual capacity requirements in Europe alone from 2025 will be in excess of 150 GWh.
Dr. Stefan Sommer, member of the Volkswagen AG Board of Management responsible for procurement, commented: "Volkswagen is laying the groundwork at all levels for the successful implementation of its electrification strategy. With Northvolt, we have now also found a European partner whose know-how and sustainable, CO2-optimized battery cell production processes will enable us to advance cell production here in Germany. The prerequisite for this is, of course, the creation of the necessary economic framework."
The Swedish Northvolt Ett plant also received a welcome financial boost recently from the European Investment Bank (EIB), with promised loan financing of 350 million euro ($393 million). The Skellefteå region in northern Sweden is already home to a prominent raw material and mining cluster that has a long history of process manufacturing and recycling. The plant will utilise 100% renewable energy within its production processes.
EIB Vice President Andrew McDowell noted: "The development of a competitive and green battery value chain within Europe can not only cut greenhouse gas emissions by decarbonising power generation and transport, but can also help protect millions of well-paid jobs in European industries in the face of increasing global competition. The 350 million-euro loan to Northvolt approved in-principle today by our board of directors is the largest-ever direct EIB financing approval for battery technology, and we look forward to working with Northvolt over the coming months to finalise contracts."
Last year, Industrial Info reported on the formation of the EU Battery Alliance and that the European Union wants to capture the lion's share of the projected 250 billion-euro ($304 billion) lithium-ion battery market. European Commission Vice President for Energy Union Maros Sefcovic wants to build between 10 and 20 European battery "Gigafactories." EC research estimates that the market will amount to roughly 200 GWh of storage. At present, Japan, South Korea and China dominate the battery market, with Tesla Motors Incorporated (NASDAQ:TSLA) (Palo Alto, California) in the U.S. making inroads. For additional information, see March 5, 2018, article - Europe Plans Assault on $300 Billion Battery Market.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The Northvolt Ett plant, which will be similar to Tesla's "gigafactories" in the U.S., is being developed by Northvolt (Stockholm, Sweden) and will have an initial capacity of 16 gigawatt-hours (GWh) of battery capacity--approximately 250,000 electric vehicles (EV) batteries per year. The plant will then be expanded to 32 GWh. Northvolt, formerly SGF Energy AB, was formed by two former Tesla senior executives Peter Carlsson and Paolo Cerruti. Northvolt has already secured a number of supply agreements with a combined order value of more than $13 billion through 2030.
"Today is not only a great milestone for Northvolt, it also marks a key moment for Europe that clearly shows that we are ready to compete in the coming wave of electrification, and that we will do so using battery cells which carry the lowest CO2 footprint possible," said Peter Carlsson, co-founder and chief executive officer of Northvolt.
In addition to the financing, VW will take a 20% stake in Northvolt and the companies have agreed to establish a 16-GWh battery cell gigafactory in Germany, somewhere in Lower Saxony. Construction of the production facility is scheduled to start, at the earliest, in 2020. Battery cell production for VW is slated to commence around the end of 2023 or beginning of 2024. VW has a very ambitious car electrification strategy, and its annual capacity requirements in Europe alone from 2025 will be in excess of 150 GWh.
Dr. Stefan Sommer, member of the Volkswagen AG Board of Management responsible for procurement, commented: "Volkswagen is laying the groundwork at all levels for the successful implementation of its electrification strategy. With Northvolt, we have now also found a European partner whose know-how and sustainable, CO2-optimized battery cell production processes will enable us to advance cell production here in Germany. The prerequisite for this is, of course, the creation of the necessary economic framework."
The Swedish Northvolt Ett plant also received a welcome financial boost recently from the European Investment Bank (EIB), with promised loan financing of 350 million euro ($393 million). The Skellefteå region in northern Sweden is already home to a prominent raw material and mining cluster that has a long history of process manufacturing and recycling. The plant will utilise 100% renewable energy within its production processes.
EIB Vice President Andrew McDowell noted: "The development of a competitive and green battery value chain within Europe can not only cut greenhouse gas emissions by decarbonising power generation and transport, but can also help protect millions of well-paid jobs in European industries in the face of increasing global competition. The 350 million-euro loan to Northvolt approved in-principle today by our board of directors is the largest-ever direct EIB financing approval for battery technology, and we look forward to working with Northvolt over the coming months to finalise contracts."
Last year, Industrial Info reported on the formation of the EU Battery Alliance and that the European Union wants to capture the lion's share of the projected 250 billion-euro ($304 billion) lithium-ion battery market. European Commission Vice President for Energy Union Maros Sefcovic wants to build between 10 and 20 European battery "Gigafactories." EC research estimates that the market will amount to roughly 200 GWh of storage. At present, Japan, South Korea and China dominate the battery market, with Tesla Motors Incorporated (NASDAQ:TSLA) (Palo Alto, California) in the U.S. making inroads. For additional information, see March 5, 2018, article - Europe Plans Assault on $300 Billion Battery Market.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
