Northvolt planning third battery-materials factory for EVs in Sweden

Northvolt is planning to convert a closed paper mill in Sweden into a new battery-materials plant in Sweden. The site for the new unit is the Kvarnsveden paper mill located in Borlange. It has been closed by Stora Enso Oyj last year. This will be the company's third production plant to meet the increasing demand for growing electric vehicles.

Northvolt mentioned it will reuse and refurbish much of the existing facilities and infrastructure. The companies have signed a letter of intent on the transaction, with a final agreement seen concluded over the next few months, Stora Enso said in a separate statement.

The factory is expected to start the first phase of its operations in late 2024 and will it is going to recruit around 1,000 people. The factory will be powered by renewable energy, according to Bloomberg's report. When it will operate at full capacity, the plant will be able to produce more than 100 gigawatt-hours of cathode material a year along with cell production.

Chief Executive Officer Peter Carlsson shared there is a high demand for sustainable, high-quality lithium-ion battery cells and systems. “With the blueprint developed at Northvolt Labs and Northvolt Ett, we will now put in another gear to scale up production even faster and larger than before," added Carlsson.

The battery-making company stated it aims to shift battery manufacturing to Europe from Asia. It has currently secured more than $50 billion worth of contracts from electric-car manufacturers including BMW AG, Volkswagen AG, Volvo Car AB and Polestar. The company's investors include Volkswagen, BMW, Goldman Sachs Group Inc. and Tesla shareholder Baillie Gifford.

Earlier this month, a report informed about Northvolt's and Volvo Cars partnership to establish a battery factory in Gothenburg located in western Sweden.