Sweden's Northvolt is opening a new gigafactory for batteries in Heide, Germany. The plant will have an annual production capacity of 60 GWh. It should thus make a significant contribution to the availability of lithium-ion batteries in the European market. Northvolt reports that the plant will produce batteries for around one million electric vehicles (EVs).
Northvolt was founded in 2016 by Peter Carlsson, a former manager of EV manufacturer Tesla. The Swedish company focuses specifically on developing lithium-ion batteries. These are intended not only for EVs, but also for a variety of other applications such as power grids and industrial applications.
Scale and automated production
Characteristic of Northvolt's approach, the company aims to transform lithium-ion battery production through a combination of scale, vertical integration and automated production. In doing so, the company says it wants to push the boundaries of battery performance, quality and cost.
The new gigafactory in Heide, Germany, should contribute to this. Northvolt's total production capacity worldwide will exceed 170 GWh annually with the arrival of the plant. Carlsson: "We are delighted with the announcement of Northvolt Drei. The project fits well into a promising future cluster of companies around clean technology that is emerging in northern Germany. And advances the broader European transition to a sustainable society, something in which Germany plays a crucial role."
The first batteries should roll off the production line in 2025 at Northvolt Drei. The new factory should create some 3,000 new jobs.
Clean energy available
The company deliberately chose Heide as the location for the new plant. Among other things, the region has one of the cleanest energy networks in Germany. This is thanks to a wide range of wind energy generated both onshore and offshore. In addition, much renewable energy is also available through interconnections with Denmark and Norway.
"It matters how we produce a battery cell. If you use coal in your production, this will process a reasonable amount of CO2 in your battery. However, if we use renewable energy, we can build a very sustainable product. Our philosophy is that new energy-intensive industries like battery production should be located in the immediate vicinity of where clean energy is produced," Carlsson said.
Central location
Heide's central location in the emerging European value chain around batteries also plays a role in the choice of location. For instance, Heide connects Scandinavia and the European continent. The region also offers the space for the establishment of a battery plant of sufficient size. Important with a view to the scale Northvolt is betting on for reducing the cost of batteries.
Finally, Northvolt also points to the availability of manufacturing and automotive expertise in Germany. Among other things, Northvolt wants to benefit from local manufacturing expertise available in the Schleswig-Holstein region, of which Heide is part.
Made of 50% recycled materials
Like other factories, Northvolt aims to manufacture batteries made of 50% recycled materials at the new German plant by 2030. Among other things, the site will be equipped with a battery recycling facility, which will process batteries sourced from the European market.
It is not the first European factory Northvolt is opening. Earlier, the company also opened a plant in Skellefteå, Sweden, and Salzgitter, Germany. The company is headquartered in Västerås, Sweden. Northvolt also established a joint venture with Portuguese energy company Galp. The parties want to set up a sustainable lithium plant together.
Author: Wouter Hoeffnagel
Photo: Northvolt Ett, another Northvolt factory (source photo: Northvolt)
