Dutch energy storage and battery company Lithium Werks and Chinese Zhejiang Jiashan Economic and Technological Development Zone Industry have signed an agreement to construct a €1.6bn, 60-hectare battery gigafactory in the Yangtze river delta, China.
The factory and related facilities will manufacture cells for lithium-ion batteries, enabling the energy transition from fossil fuels to clean energy.
The agreement was signed in the presence of Chinese Premier Li Keqiang and Dutch Prime Minister Mark Rutte.
Lithium Werks intends to build multiple gigafactories in several countries under a programme for the long-term business models of the wind and solar industry.
The company expects to have an installed production capacity of 500GWh per annum by 2030.
Lithium Werks board chairman Kees Koolen said: “With our Chinese partners’ help, and as we continue to grow both organically and through acquisitions, we will deliver the energy storage solutions that our customers increasingly ask for as the world transitions to clean energy.”
The company expects its revenue to cross $1bn by 2020.
Koolen said: “We are grateful and happy to work with our Chinese partners, the first to support our strategy to have a factory in their country.
“Speed of execution is key as is evidenced by building permit and other regulatory processes in China being completed within 100 days.
“Other countries and partners are invited to take up the dialogue in order to accelerate the roll out in other locations.”
Lithium Werks is developing a research campus with regional development organisation Oost, which has invested in the company, and with the University of Twente.
The research campus is expected to employ 2,000 engineers and other experts by 2025 to focus on energy storage, transport and smart software.
Oost CEO Marius Prins said: “As the development company, we were among the first to invest in Lithium Werks. We firmly believe that Lithium Werks’ energy research R&D activities will contribute significantly to the strength of East Netherlands’ economy.”
Image: Company officials singing the contract. Photo: Courtesy of Lithium Werks.