Construction of a new Northvolt battery plant in the German state of Schleswig-Holstein has started. The Northvolt Drei plant just outside Heide should be operational by 2026 and start producing battery cells on European soil for electric vehicles (EVs) and others.
Northvolt is a Swedish company founded in 2016 by Peter Carlsson, who previously worked at Tesla as a manager. The company focuses on developing lithium-ion batteries. These battery cells are intended not only for electric vehicles, but also for industrial applications and use in power grids. In doing so, Northvolt aims to improve battery performance, quality and costs by focusing on scale, vertical integration and automated processes.
60 GWh of battery cells on an annual basis
With Northvolt Drei, Northvolt is opening a new gigafactory. The factory will use wind energy to produce battery cells, which Northvolt claims will produce the greenest batteries for electric vehicles, industry and the energy sector.
The plant's annual production capacity is to be 60 GWh. This brings Northvolt's total production capacity to more than 170 GWh per year.
Importance of renewable energy
The plant is located just outside Heide, a municipality with just over twenty thousand inhabitants. In choosing this location, Northvolt previously pointed to the presence of one of the cleanest energy networks in Germany. For instance, the region produces a lot of wind energy both onshore and offshore. In addition, a lot of renewable energy is available through connections with Denmark and Norway.
Northvolt CEO and co-founder Peter Carlsson highlights the importance of renewable energy. "It matters how we produce a battery cell. If you use coal in your production, this means you 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 close proximity to clean energy production," Carlsson said at an earlier Northvolt Drei announcement.
Produced from 50% recycled materials
The focus on sustainability is also reflected in the use of recycled materials. For example, batteries produced by the company are 50% made of recycled materials. Northvolt Drei therefore includes battery recycling facility, where Northvolt aims to recycle batteries from the European market.
It is Northvolt's second plant in Germany. It has long had a production site in Salzgitter, Germany, in addition to a plant in Skellefteå, Sweden. Northvolt's head office is located in Västerås, Sweden.
Strategic importance
German Chancellor Olaf Scholz, Vice-Chancellor Robert Haback, Prime Minister of Schleswig-Holstein Daniel Günther, Northvolt Drei CEO Christofer Haux and Carlsson attended the opening.
"Investments like Northvolt's are of strategic importance for our country and Europe. Germany was, is and will remain a country with a strong manufacturing base. And producing good cars after the internal combustion engine remains the backbone of our industrial sector. For that, we need battery cells made in Germany, in Europe. It is therefore good news for our country that battery cells for a million cars a year will be produced here in the north in the future in a climate-friendly way," Chancellor Scholz said.
Author: Wouter Hoeffnagel
Image: Northvolt
