VW and Goldman Sachs-backed Northvolt plans German gigafactory

A lithium-ion prismatic mobile battery from Northvolt, photographed on Feb. 17, 2022.

Mikael Sjoberg | Bloomberg | Getty Pictures

Northvolt explained Tuesday it would look to develop a gigafactory in Germany, with the business hoping the facility’s 1st batteries will be developed in 2025.

In a assertion, the Stockholm-headquartered battery maker said the Northvolt Drei plant would be positioned in Heide, northern Germany, and present lithium-ion batteries for the European market place.

Northvolt reported the plant’s “likely output capability” was slated to be 60 gigawatt several hours per 12 months, which would be “adequate for some one particular million electric motor vehicles.”

The business claimed Northvolt Drei — “drei” is a few in German — would be its third gigafactory. Gigafactories are facilities that develop batteries for electric motor vehicles on a significant scale. Tesla CEO Elon Musk has been commonly credited as coining the time period.

Northvolt mentioned the spot of the manufacturing facility in the state of Schleswig-Holstein would enable it to faucet into the area’s electricity grid.

It described the grid as being “characterised by a surplus of electrical energy created by onshore and offshore wind electricity and bolstered by clean electrical power supplied by way of grid interconnections to Denmark and Norway.”

Northvolt was started in 2016 and has attracted investment decision from Goldman Sachs and Volkswagen, amongst others.

“It matters how we produce a battery mobile,” Peter Carlsson, Northvolt’s CEO, reported Tuesday. “If you use coal in your manufacturing, you embed a truthful sum of CO2 into your battery, but if we use thoroughly clean energy, we can make a extremely sustainable products,” Carlsson reported.

“Our philosophy is that new power-intense industries, this sort of as battery manufacturing, ought to be set up in real geographical proximity to where the thoroughly clean energy is produced.”

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Northvolt is not on your own in hunting to build a gigafactory in Germany, an industrial and economic powerhouse which is home to a hugely experienced labor force. Tesla is operating on its Gigafactory Berlin-Brandenburg, for illustration.

In other places, VW — which in Dec. 2021 mentioned it had a stake of around 20% in Northvolt — wants to establish a range of its own gigafactories in Europe, such as a person in the German condition of Reduce Saxony.

Even further afield, on Monday Ford mentioned it experienced signed a non-binding memorandum of knowing with South Korea’s SK On Co. and Turkey’s Koç Holding.

The MOU relates to the institution of a joint undertaking centered all around the progress of a commercial EV battery facility close to the Turkish funds of Ankara. If all goes to strategy, it truly is hoped generation at the plant could start by the center of this decade.

Ford said the JV experienced guidance from the Turkish authorities and would have a capacity ranging involving 30 to 45 gigawatt several hours for each yr.

Efforts to set up amenities targeted on EV batteries come at a time when big economies are looking to reduce the environmental footprint of highway-based mostly transportation and move absent from autos based on gasoline and diesel.

The European Fee, the EU’s government arm, is targeting a 100% reduction in CO2 emissions from cars and trucks and vans by 2035. Turkey, where the Ford-backed battery facility would be located, is not part of the EU.

The U.K., which left the EU at the finish of January 2020, needs to cease the sale of new diesel and gasoline cars and vans by 2030. It will call for, from 2035, all new automobiles and vans to have zero-tailpipe emissions.