EIB to fund €350m for Northvolt’s gigafactory in Sweden

WCN Editorial Team 16 May 2019 EUROPE BUILDINGS

The European Investment Bank (EIB) has agreed to provide €350m in financing to Northvolt for the construction of Northvolt Ett, a gigafactory for producing lithium-ion battery cells in Skellefteå, Sweden.

Northvolt said that the new gigafactory site is home to prominent raw material and mining cluster which had a long history of process manufacturing and recycling.

The place is also known as a clean power base, and the factory will be powered by 100% renewable energy.

Set to serve as Northvolt’s primary production site, the facility will host active material preparation, cell assembly, recycling and auxiliaries.

The batteries produced at the facility will be used across automotive, grid storage and industrial and other portable applications.

Construction on the new facility is expected to be completed next year.

Northvolt Ett, operating at full capacity, will able to produce lithium-ion batteries with an annual capacity of 32GWh.

EIB vice-president Andrew McDowell said: “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 EUR 350m 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.”

Northvolt co-founder and CEO Peter Carlsson said: “This EIB in principle approval is a key moment in the process of finalizing our capital raise to support the establishment of Northvolt Ett. Today, we are one step closer to our goal of building the greenest batteries in the world and enabling the European transition to a decarbonized future.”

In October 2018, Northvolt announced that it will establish a battery production facility in Gdansk, Poland. The facility will be operated under a partnership between the company and South Bay Solutions.

According to Northvolt, latest technology in manufacturing and production will be employed at the Polish battery facility, which was set to begin production this year. The initial capacity of the facility will be 10,000 modules per year and gradually the capacity will be ramped up in the following years.

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Image: Artist’s impression of Northvolt Ett. Photo: Courtesy of Northvolt AB.

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