We now know the green economy is impossible without vast arrays of battery storage. Moreover, much the same applies to electric vehicles where we need maximum density. Therefore the European Union is determined to catch up to protect its strategic interests using European funding. EurActiv announced on May 17, 2019 the European Investment Bank is injecting $390 million / €350 million in a new battery factory.
NorthVolt AB: Intended Recipient of European Funding
NorthVolt was established in 2015 originally under the name SGF Energy, to make lithium batteries for vehicles and storage. The Swedish Energy Agency previously loaned it an equivalent $2 million in 2016 for a preliminary study on a battery factory.
NorthVolt will use the European funding towards construction of a Tesla-lookalike ‘giga factory’ near Skellefteå in the northern reaches of Sweden. This is a city housing some 72,000 inhabitants with a rich gold mining history. Accordingly, it has an advanced industrial infrastructure no doubt well able to support a project of this size.
Site of Giga Factory near Skellefteå, Sweden
Battery Production to be Similar to Tesla in Nevada
The European Investment Bank loan will fund the first phase of 16 gigawatt-hours annual output by 2020. This will be sufficient to power a quarter million electric cars a year. However, 32 gigawatt-hours annually is the ultimate goal. By comparison, the Tesla factory in Nevada is producing 23 gigawatt-hours against 35 gigawatt-hour capacity.
NorthVolt’s pioneer and co-investor, Peter Carlsson, is no newcomer to the industry. Four years working at Tesla taught him he will need equivalent to $1.8 billion to complete the project. This is a tough order he must see through to obtain future European funding. That’s because European Commission vice president Maroš Šefčovič has an exciting vision.
Moreover he has already affirmed Europe needs “between ten and twenty giga factories” total. This in order to tap into a market he expects will be worth €250bn annually by 2025.
Related
European Union Batteries Directive Update
European Union Steals a March with Storage
Preview Image: Industrial Development in Skellefteå
Video Share Link: https://youtu.be/Ad4JZNpUL-8
