Swedish lithium-ion battery start-up Northvolt has finalised a five-year supply agreement for the supply of battery grade lithium hydroxide from Canada’s Nemaska Lithium.
The definitive agreement confirms proposals outlined by the companies earlier this year.
Northvolt will receive up to 5,000 metric tonnes, but not less than 3,500MT per year, of lithium hydroxide on a take-or-pay basis over a five-year period.
The period will begin upon the start of commercial production at both Nemaska’s Shawinigan facility and Northvolt’s Skelleftea facility— which is expected to produce eight gigawatt-hours of battery capacity every year. On full completion in 2023, the factory will have a production capacity of 32GWh annually.
Sweden is seen as a key player in the European Union’s plans to build a ‘batteries alliance’— including a battery cells industry to challenge Asia’s dominance in the battery sector. The European Investment Bank has already agreed to finance construction of Northvolt’s lithium-ion battery manufacturing plant at Vasteras.
BEST Battery Briefing reported last June that Siemens was investing €10 million (US$11.5m) to partner Northvolt in developing “next generation Green lithium-ion batteries”.