Located in the north of Sweden, barely 200 km from the Arctic Circle, in Skellefteo, this “mega factory”, or “giga factory” according to the concept dear to Elon Musk, aims to repair the absence of Europe on the very promising market for electric batteries. It is a question of making room for the Asian competitors: South Koreans, Japanese, Chinese especially but also American.
China is, as we know, the leading producer of electric batteries, but the American Tesla is agile in this area. Asians and Americans alike already have mega-factory projects in Europe, whether in Germany, Poland, Hungary or Spain. In front of them, it is the Swedish group Northvolt which carries European hopes. The company, ironically, was founded in 2015 by two Tesla alumni.
The factory assembled its first electric battery cell last night. The first both designed, developed and assembled entirely in Europe. Ultimately, the site should be able to equip one million vehicles each year. It is targeting 300,000 within 2 years.
Its advantage also lies in the mode of production. We know that making batteries is very energy intensive, and sometimes with very carbonaceous energy. However, the Swedish group’s plant is powered by 100% renewable energy, notably through hydroelectricity.
It will also produce batteries from at least 50% recycled materials. Nickel, manganese or cobalt will be recovered from used batteries. A more obvious compared to extraction not only for the environment, of course, but also for a truly strategic autonomy when we are talking about relatively rare materials.
And the market whets appetites. It is estimated that in 2030 nearly half of new vehicles sold will be electric, 100% ten years later. Europe now intends to catch up, going from around 3% today to 25% of the market by 2030.
At the start of the year, the committee approved nearly € 3 billion in public aid for new generation batteries. A vast research project that encompasses public and private. It brings together twelve Member States including Germany which coordinates the whole, France and Italy and around forty companies. European funding should pave the way for some € 9 billion in private funds.
Northvolt’s order book is already filling up to $ 30 billion from BMW, Volkswagen or Volvo. Many more factories are expected to emerge. There are 38 projects in Europe. According to the Vice-President of the Commission, the continent has even become the 1st place in the world in terms of investment in electric batteries. And the key to the jobs of tomorrow. It is estimated that with electric vehicles, there is a source of some 800,000 jobs.