EU to Support Northvolt’s European Battery Project

The European Investment Bank (EIB) has approved a loan request from Swedish company Nothvolt AB for the construction and operation of a first-of-a-kind demonstration plant in Västerås, Sweden, for the manufacturing of Lithium-Ion batteries.

The loan of up to 52.5 million Euro is set to be supported by the European Commission through InnovFin under the “Energy Demo Projects” (EDP) Facility. When the negotiations will be concluded and after signature, Northvolt is expected to begin construction of its demonstration line in the coming months.

According to the information, this facility is being built in order to show the commercial viability of the concept and to qualify and industrialize products together with the company’s customers. It would also comprise a research facility. “The produced batteries are targeted for use in transport, stationary storage and industrial and consumer applications,” EIB gave account.

As reported, the launch of the demonstration plant is a key step towards the establishment of Northvolt’s large-scale Li-ion battery factory in Skellefteå in the north of Sweden, eventually targeting a production of 32 GWh worth of battery capacity annually. It will serve as the main production site, which includes active material preparation, cell assembly, recycling and auxiliaries. The company plans to start construction during this year. Northvolt was founded in 2016 with the mission to build the world‘s greenest battery, with a minimal carbon footprint and the highest ambitions for recycling in order to enable the European transition to renewable energy.

Photo: Northvolt

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