- The EIB has approved a EUR 350 million loan in principle for the gigafactory.
- The factory will produce 32 GWh of battery capacity annually.
- Construction of the first quarter of the factory will be completed in 2020.
- The capital raise will finance the first 16 GWh of battery capacity production.
Investment and Support
The European Investment Bank (EIB) has given its in-principle agreement to support the financing of Northvolt Ett, Europe’s first home-grown gigafactory for lithium-ion battery cells, in Skellefteå, Sweden. The financing, upon conclusion of a loan agreement, would be supported by the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe.
Location and Energy Use
The gigafactory will be established in Skellefteå, a region known for its raw material and mining cluster, with a long history of process manufacturing and recycling. The factory will utilize 100% renewable energy within its production processes, leveraging the region’s clean power base.
Production Capacity and Timeline
Northvolt Ett will serve as the primary production site, hosting active material preparation, cell assembly, recycling, and auxiliaries. The construction of the first quarter of the factory will be completed in 2020. Once fully operational, Northvolt Ett will produce 32 GWh of battery capacity per year.
Capital Raise and Applications
The capital raise, which includes the EIB loan, will finance the establishment of the first 16 GWh of battery capacity production. The batteries produced are targeted for use in automotive, grid storage, industrial, and portable applications.
Strategic Importance
The EIB and the European Commission view this project as a stepping-stone towards building a competitive, sustainable, and innovative battery value chain in Europe. The project aims to decarbonize power generation and transport, protect jobs, and position the EU as a leader in the rapidly expanding battery sector.
