US $1billion financing will help build the largest lithium ion battery factory in Europe

At first, due to the lack of industrial policies, Europe abandoned its first mover advantage in the photovoltaic manufacturing field. Now, the EU is determined to avoid repeating the mistakes in the battery field. Northvolt, founded by Swedish entrepreneur Peter Carlsson, has obtained a financing of US $1billion, which will lay the foundation for it to win the European battery market.

Northvolt said that the consortium to raise funds was led by the commercial banking departments of Volkswagen Group and Goldman Sachs, and its members also included BMW Group, folksam group, a Swedish insurance company, and IMAS foundation associated with IKEA. In addition, the European Investment Bank approved a US $400million loan in May this year to help the company establish a lithium-ion battery production base.

The second gigafactory

Northvolt has a research laboratory in Sweden, two battery plants under construction, namely northvolt ETT and northvolt labs, and a battery system plant in Poland, which has been put into production. The company said that the newly injected 1billion US dollars is expected to be used to expand northvolt ETT, a battery factory in Sweden, into a "super factory", which may be the first lithium-ion battery super factory in Europe. The plan will start in August this year. Although most of the factories have not been fully formed, the prospect of self built battery factories in Europe is very bright. The company said that it has reached supply agreements with a number of suppliers, and the total order volume by 2030 exceeded US $13billion.

Northvolt said that the consortium to raise funds was led by the commercial banking departments of Volkswagen Group and Goldman Sachs, and its members also included BMW Group, folksam group, a Swedish insurance company, and IMAS foundation associated with IKEA. In addition, the European Investment Bank approved a US $400million loan in May this year to help the company establish a lithium-ion battery production base.

The second gigafactory

Northvolt has a research laboratory in Sweden, two battery plants under construction, namely northvolt ETT and northvolt labs, and a battery system plant in Poland, which has been put into production. The company said that the newly injected 1billion US dollars is expected to be used to expand northvolt ETT, a battery factory in Sweden, into a "super factory", which may be the first lithium-ion battery super factory in Europe. The plan will start in August this year. Although most of the factories have not been fully formed, the prospect of self built battery factories in Europe is very bright. The company said that it has reached supply agreements with a number of suppliers, and the total order volume by 2030 exceeded US $13billion.

Ambitious European companies

Novotel is regarded as a great milestone and will be on a par with China's Ningde era and BYD in the future. It marks that Europe is preparing to compete with the battery industry around the world in the future of electrification, and is determined to realize the possibility of minimizing carbon dioxide emissions through batteries. The EU has established a battery alliance to enhance the leading position of European manufacturers in the global market. The European Commission predicts that 10-20 super factories are needed to meet the needs of the EU alone. By building its own factory, Europe can obtain a battery market worth 282billion US dollars every year from 2025.