Northvolt Plans a Third Battery Materials Factory in Sweden

Northvolt site
Northvolt AB plans to convert a closed paper mill in Sweden into a new battery-materials factory. (Northvolt)

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Northvolt AB plans to convert a closed paper mill in Sweden into a new battery materials factory, adding a third production facility in the Nordic country to supply demand fueled by the growing electrification of transport.

The plant is expected to start the first part of its operations in late 2024 and will employ as many as 1,000 people, according to a statement Feb. 25. When operating at full capacity, the site will be able to produce more than 100 gigawatt hours of cathode material a year and also will feature cell production. It will be powered with renewable energy.

“There is a massive global demand for sustainable, high-quality lithium-ion battery cells and systems,” CEO Peter Carlsson said in the statement. “With the blueprint developed at Northvolt Labs and Northvolt Ett, we will now put in another gear to scale up production even faster and larger than before.”

Northvolt says it wants to shift the balance of battery-making power to Europe from Asia, and has now secured more than $50 billion worth of contracts from electric car manufacturers including BMW AG, Volkswagen AG, Volvo Car AB and Polestar. It had previously said orders amount to about $30 billion. Its investors include Volkswagen, BMW, Goldman Sachs Group Inc. and Tesla Inc. shareholder Baillie Gifford. Spotify Technology SA CEO Daniel Ek also is a backer.

READ MORE: Volvo, Northvolt Join Forces on European EV Battery Factory

The site for the new unit is the Kvarnsveden paper mill in Borlange closed by Stora Enso Oyj last year. Northvolt said it plans to reuse and refurbish much of the existing facilities and infrastructure. The companies signed a letter of intent on the transaction, with a final agreement seen concluded over the next few months, Stora Enso said in a separate statement.

Northvolt announced earlier this month it would set up a cell plant in Gothenburg, Sweden, with Volvo Cars to supply Volvo and Polestar models from 2025.

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