The location of Europe’s next lithium-ion gigafactory to produce “state-of-the-art” cells for use in next generation pure electric cars has been unveiled by vehicle OEM Volvo Cars and developer Northvolt.
The firms have selected Gothenburg, Sweden to build the battery manufacturing plant, which could have a capacity of up to 50GWh.
Construction is due to begin next year, with commissioning scheduled for 2025.
Once completed the plant could supply batteries for around half a million cars per year— useful as Volvo’ electrification strategy includes the goal of only producing and selling fully electric cars by 2030.
The location of the plant offers benefits in terms of a direct route into Volvo’ largest car plant, access to infrastructure, a strong pipeline of renewable energy supply and relevant job competences.
The location also benefits from being close to a research and development centre in Gothenburg that is being built by the firms in a joint partnership.
The R&D centre, which is due to become operational later this year, is part of a SEK 30 billion ($3.2 billion) investment by the firms in battery development and manufacturing.
Javier Varela, head of engineering and operations at Volvo, said: “Through our partnership with Northvolt we will also benefit greatly from an end-to-end battery value chain, from raw material to complete car, ensuring optimal integration in our cars.”
Volvo Cars and Northvolt have appointed former Tesla executive Adrian Clarke to lead the production company.