European Investment bank accepts loan for the biggest battery factory in Europe in Skellefteå, northern Sweden
To create a Europe that can sustain the demand of batteries that rises with the change to green energy in for example the automotive sector, the European Investment bank granted a loan of 350 million euro to the company Northvolt, that is planning to build the biggest battery factory in Skellefteå in Västerbotten. Northvolt´s goal is to create the world’s most environmentally friendly battery production.
A European production of batteries
With a Europe that is moving more and more to green energy, especially within the automotive sector with electrical engines, the need for batteries rises. Today Europe has ended up behind within this market, that is currently dominated by Asian companies and production. Therefore, it is a priority of the EU to invest in new battery factories. The Swedish company Northvolt has goals to not only provide for the need of batteries in Europe now and in the future but is also striving to create the world’s most environmentally friendly battery production with a minimal carbon monoxide footprint.
The financing of Northvolt One in Skellefteå
On May 15 the European Investment bank (EIB) decided to lend the money needed to finance the building of the Northvolt factory, “Northvolt One” in Skellefteå. The loan is estimated at 350 million euro. The factory is planned to be the biggest producer of batteries in Europe.
The EU-commissions strategic tools and the partner EIB is the world’s largest multilateral non-profit bank. EIB supports small companies in startup to expand their business. The financing of the Northvolt factory is supported by the European fund for strategic investments (EFSI), the main pillar of the European investment plan. Within areas important to the EU, EFST supports investment in infrastructure, energy, renewable energy, research, climate, agriculture and digital technology, health, education and social projects.
Strategically smart to place the factory in northern Sweden.
Building the factory in Skellefteå is a strategically smart choice. Northern Sweden is rich in raw materials and consists of mine clusters with a long history of factory and production processes and recycling. The fact that the region has a strong supply of clean energy makes it so that Northvolt can use 100% renewable energy in their production process.
Northvolt One will function as Northvolts primary production facility, host for active material preparation, cell mounting, recycling and help Centre. The first part of the factory will be done in 2020. When Northvolt One is finished and running at full capacity the factory will be able to produce 32GWh of battery capacity per year.
Read more about Northvolt, here.
Read more on ESFI, here.
Learn more about the european investmentplan, here.