146 million to Northvolt’s pilot plant in Västerås
The Swedish Energy Agency has granted funding of up to SEK 146 million to Northvolt Lab's planned pilot plant for large-scale battery manufacturing in Sweden. The decision is a major step towards a new domestic industry and a sustainable energy system.
The project is about building and operating a pilot plant to produce lithium-ion batteries in Västerås. In addition to testing and validating a new production and process model that enables battery manufacturing with lower environmental impact, the pilot plant will also serve as a research and development center for sustainable and flexible battery production.
The environmental and climate benefits of a Swedish large-scale battery production are high. Among other things the carbon dioxide outputs for battery production can, due to the Swedish energy mix, be halved compared to, for example, an Asian energy mix. Batteries will also be of great importance in the transition of the transport system and the way forward to a sustainable Swedish energy system.
"Sweden's unique safe, competitive and green energy system is an important factor in the establishment of this new industry and creation of new jobs. The transition of the transport sector to electrification creates new opportunities, and large-scale battery production is important for Sweden's central role in this transition to mitigate of the climate impact of the transport sector in Sweden and globally." says Erik Brandsma, Director General at the Swedish Energy Agency.
The Swedish Energy Agency's decision to grant funding to Northvolt Lab's also creates the prerequisites for an ecosystem of Swedish companies throughout the battery value chain, from raw materials to battery systems.
"Europe is moving rapidly towards electrification. The establishment of the pilot plant in Västerås is not only an important step towards establishing Northvolt's battery factory, it is also the starting point for the creation of a European battery supply chain that will enable the transition from fossil fuels to renewable energy." says Peter Carlsson, CEO Northvolt.
The pilot plant in Västerås is expected to employ about 100 people, excluding staff for research and development. At a later stage, the full scale production plant in Skellefteå may generate another 2500 jobs. The pilot plant in Västerås is a decisive first step for its establishment.
About the funding
The Swedish Energy Agency has decided to fund Northvolt's pilot plant for battery manufacturing with no more than 146 million kronor. The project is divided into several phases and extends from 2018 to the end of 2023. The funding corresponds to 20 percent of the support costs for the project. The conditional payments of the funding are made in different stages, provided Northvolt secures co-financing and achieves other interim goals in the project.