The company signed a letter of intent with Stora Enso regarding the purchase of the Kvarnsveden Mill and the surrounding industrial area in Borlänge, Sweden.
If the parties agree to the deal, Northvolt is expected to reuse and refurbish much of the existing facilities and site infrastructure to create a new gigafactory.
According to the press release, the first part of the plant might start operations in late 2024, while the ultimate production volume of cathode material might be enough for more than 100 GWh of lithium-ion batteries per year.
Additionally, battery cells would be produced at the site as well, but as we understand, most of the cathode materials would be used for other Northvolt plants.
"The gigafactory is expected to start the first part of its operations in late 2024 and will employ up to 1,000 people, utilizing 100 percent clean energy from the region. Fully built out, the site will have a potential annual production capacity of more than 100 GWh of cathode material, which will enable cell assembly at multiple Northvolt facilities. The site will also feature cell production."
Northvolt reports that so far it has received more than $50 billion in orders from key customers, including BMW, Volkswagen Group and Volvo Cars/Polestar.
The company is in the process of creating a joint venture battery cell gigafactory with Volvo Cars in Sweden (50 GWh plant), as well as building its own battery cell plant - the Northvolt Ett gigafactory (60 GWh) in Skellefteå, northern Sweden (initial production already started). Volkswagen Group holds about a 20% stake in Northvolt.
Northvolt plan for the site in brief:
- Location: Kvarnsveden Mill and the surrounding industrial area in Borlänge, Sweden
(a closed paper mill)
- Production: cathode active material (enough for up to 100 GWh of batteries per year) and battery cells
- Jobs: up to 1,000
- Initial start: late 2024