Northvolt invests $200M in Poland plant
To be the largest energy storage solutions facility in Europe Metal Tech News – February 24, 2021
Last updated 3/2/2021 at 5:15pm
Furthering its ambitions to be a premium and sustainable battery solutions leader, Northvolt is investing US$200 million to build the largest energy storage systems factory in Europe.
The first stage of the planned 50,000-square-meter (538,000 square feet) cutting edge battery systems factory being built in Gdańsk, Poland is already underway.
This initial phase, expected to be completed next year, will be able to produce 5 gigawatt-hours of lithium-ion battery modules and storage solutions per year. A second stage will expand the factory output capacity of 12 GWh and include a new engineering research and development center of excellence.
With lithium-ion battery cells from Northvolt's Ett gigafactory in Sweden, the Gdańsk factory will manufacture battery modules and systems needed to fulfill contracts that Northvolt has secured with customers seeking long-term, high-volume supply agreements for complete battery system solutions across grid and industrial markets.
In delivering these battery solutions, Northvolt will be providing technical solutions required for ending industrial dependence on fossil fuels and unlocking the use of increasing amounts of renewable energy across society.
"Securing battery cell manufacturing capacity in Europe is key for its industrial future, but what is equally critical is the industrial capacity for integrating cells into real-world solutions. It is this that the new factory will deliver – sophisticated, sustainable energy storage systems to support the transformation of Europe's electricity grid and its industry," said Northvolt CEO Peter Carlsson.
With the Northvolt Battery Systems Jeden, a battery solutions facility in Gdańsk, the Swedish battery is impressed with the quality of the workforce in Poland.
"Northvolt has been present in Poland for three years and we are impressed by both the professionalism and caliber of the engineers and manufacturing staff we're engaged with in our activities here," said Northvolt President of Battery Systems Emad Zand. "We are excited about going out and recruiting 500 more."
Availability of renewable energy to power the battery solutions factory was another important factor in Northvolt's decision to locate the facility in Gdańsk.
With a foundational mission to build green lithium-ion batteries that enable the European transition to a clean, carbon-neutral energy future, Northvolt is committed to powering its cell manufacturing facilities with 100% renewable energy.
Building upon the low emission production platform established in Sweden, Northvolt's cutting edge energy storage solutions factory in Poland will be powered with renewable energy, including electricity generated on-site.
Since launching in March 2017, Northvolt has grown to more than 700 people and now employs over 70 different nationalities at its facilities in Sweden, Germany, and Poland.
This rapidly expanding battery manufacturing company is targeting 150 GWh of commissioned annual production capacity by 2030, equivalent to an approximately 25% market share in Europe.
This includes a German battery factory being developed in joint venture partnership with Volkswagen Group with an initial 16GWh storage capacity and the potential to expand output to 40GWh, and a US$2.3 billion (2 billion euros) long-term battery supply contract reached with BMW Group in 2020.
More information on the agreement with BMW can be read at BMW, Northvolt sign 2B Euro battery deal in the July 22, 2020 edition of Metal Tech News.
"The momentum for electrification is stronger than ever. Our customers need large volumes of high-quality batteries with a low CO2 footprint, and Europe must build a fully regionalized value chain to support them," Carlsson said upon Northvolt closing a US$1.6 billion debt financing last July.
With the $200 million being invested in the Poland battery solutions facility, Northvolt continues to do its part to help fulfill this need.