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March 16, 2022

Northvolt plans to develop 60GWh battery factory in Germany

Located in Schleswig-Holstein, the facility is due to start producing lithium-ion batteries in 2025.

Swedish battery manufacturer Northvolt has announced plans to build a gigafactory, with an annual production capacity of 60GWh, in northern Germany.

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The Northvolt Drei plant will be built in Heide, Schleswig-Holstein, and will be engaged in the production of lithium-ion batteries for the European market.

It will produce enough batteries to meet the requirements of nearly one million electric vehicles a year.

The manufacturing facility is expected to start production in 2025 and create an estimated 3,000 jobs in the region.

Northvolt said that its facility will be powered by the ‘cleanest’ electricity grid in Germany.

Northvolt co-founder and CEO Peter Carlsson said: “We’re excited to announce Northvolt Drei – a project which fits well into a promising future cluster of clean technology ventures emerging in northern Germany and advances the wider European transition towards a sustainable society within which Germany plays a crucial role.

“It matters how we produce a battery cell. If you use coal in your production, you embed a fair amount of CO₂ into your battery, but if we use clean energy, we can build a very sustainable product.

“Our philosophy is that new energy-intensive industries, such as battery manufacturing, should be established in actual geographical proximity to where the clean energy is produced.”

Northvolt said that its factory will source raw material from recycled battery metals as part of its commitment to procuring 50% of its raw material needs from recycling by 2030.

The company also plans to build a battery recycling plant at the site to reuse by-products from the production process.

Last June, Northvolt raised $2.75bn in equity to expand its battery cell production capacity at its factory in northern Sweden.

The company’s first factory is located in the northern Swedish town of Skelleftea, while its second facility will be located in Gothenburg.

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Free Report
img

Battery energy storage will be the key to energy transition – find out how

The market for battery energy storage is estimated to grow to $10.84bn in 2026. The fall in battery technology prices and the increasing need for grid stability are just two reasons GlobalData have predicted for this growth, with the integration of renewable power holding significant sway over the power market. Over the last decade, various new digital and smart technologies have been integrated, with countries aggressively promoting the modernization of grids, enhancing the grids’ capability to meet present and future requirements. As part of the effort, batteries are being deployed for a wide range of uses. A few such uses include aiding smart grids, integrating renewables, and creating responsive electricity markets. Read this report for expert insights into:
  • Market size and growth
  • Key drivers and restraints
  • Regional trends
  • The impact of the commodity price increase on the battery prices
Get ahead of this growing market and win big by utilizing our report.
by GlobalData
Enter your details here to receive your free Report.

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