Northvolt to Invest $200 Mn to Establish Europe’s Largest Energy Storage Factory

The first utility-scale energy storage installations in Idaho are underway as construction has begun on them.

Northvolt’s vision of enabling the future of energy takes a new step forward through a $200 million expansion of its battery systems capabilities in Gdańsk, Poland. Entering into production in 2022, a new factory will have an initial annual output of 5 GWh, and potential future capacity of 12 GWh.

“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 Peter Carlsson, Co-Founder and CEO, Northvolt.

The investment will facilitate a ramp-up in the manufacturing capacity of battery modules and systems in order 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.

The project reflects Northvolt’s ambitions to become a global leader in the development and delivery of premium, sustainable battery solutions for the European market and builds off of the company’s start-up of a battery systems industrialization plant in Gdańsk in 2019.

The development of the new factory has already commenced, with the expectation that the first phase of construction will begin in autumn 2021, for a start of production in 2022. The initial phase of the project will establish an annual output of 5 GWh of modules and packs. A second phase of the project will see the factory expanded to a total capacity of 12 GWh. Including a new engineering R&D center of excellence to be set-up in conjunction with the factory expansion, the initiative will create 500 new jobs in the Gdańsk region.

“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. We are excited about going out and recruiting 500 more,” said Emad Zand, President Battery Systems, Northvolt.

The factory will receive its supply of lithium-ion battery cells from Northvolt Ett gigafactory, located in Skellefteå, Sweden. As Northvolt’s ambition is to continue to build on the low emission production platform established in Sweden within its operations in Poland, the new factory will be powered with renewable energy, including on-site renewable energy generation.