Northvolt is set to build a €4bn lithium-ion battery factory in Sweden.
The initial facility will have a capacity to produce about eight gigawatt-hours (GWH) of batteries annually, rising to 32 once fully operational, according to Bloomberg.
Vattenfall is supporting Northvolt’s CEO, Peter Carlsson — Tesla’s former head of sourcing and supply chains — plans with €523,100 in investment for the project.
Carlsson said: "Of course, it's very valuable for us to have one of the Nordics biggest energy companies involved and investing in Northvolt's plan to construct Europe's largest battery factory.
“Our investment aims to enable the fossil-free energy systems of the future. We are very happy that Vattenfall wants to join us on this journey and we believe it is a win-win situation for society as a whole.”
The factory will become ‘the largest of its kind in Europe’, according to the utility company, and will supply the transport sector and other industries with energy storage solutions.
Andreas Regnell, Vattenfall’s head of strategy and member of NorthVolt's advisory board, said: "Vattenfall has a clear strategy of supporting the energy transition and climate-smart solutions. Electricity storage will be a significant factor in the transition, mostly in the transport sector and also the energy system at large.”
The Swedish Energy Agency and the Swedish public innovation agency Vinnova, among others, have also provided funds to Northvolt.
Construction work is expected to begin in 2018, with production set to start at the end of 2020.
* For more information on Sweden construction market, visit the Construction Intelligence Center Report Store.