Swedish battery maker, Northvolt, has announced plans to construct a new multi-billion dollar battery factory in Canada. This will be the company's first production site outside of Europe and will enable it to cater to the growing demand for electric vehicles in the North American market.
The new facility, named Northvolt Six, will be located just outside of Montreal and will commence construction on its first phase later this year. The factory is set to become operational by 2026 and will be entirely powered by hydroelectricity.
Once completed, Northvolt Six will have an impressive annual cell manufacturing capacity of 60 gigawatt-hours. This will allow the factory to produce enough batteries for approximately one million electric vehicles annually. In addition to the cell manufacturing capacity, the site will also include facilities for material production and battery recycling.
The initial phase of construction, which will enable a capacity of 30 gigawatt-hours, requires a significant investment of $5 billion. To support this venture, the Canadian government and local Quebec administration have committed a total of $2.7 billion Canadian dollars ($2 billion).
As part of the agreement, Canada and Quebec have pledged to provide Northvolt with production support equivalent to the U.S. Inflation Reduction Act's Advanced Manufacturing Production Credit, which can reach up to $35 per kilowatt-hour. Furthermore, the company will receive production incentives worth up to C$4.6 billion.
With this strategic move, Northvolt aims to solidify its presence in the North American market while benefiting from the support and incentives offered by Canada and Quebec.
Northvolt Expands Reach with New Gigafactory
Northvolt, the battery manufacturing company, is set to establish its presence in North America with their latest project, Northvolt North America. The CEO of this new venture will be Paolo Cerruti, one of the co-founders of Northvolt. With the head office based in Montreal, the company aims to tap into the vast potential of North America's markets and position Quebec as a pivotal player in the global energy transition.
Cerruti emphasized the significance of Northvolt's expansion, stating, "We have identified Northvolt Six as an enormous opportunity to not only expand our sustainable battery offerings in North America rapidly but also to further accelerate Quebec's position in the global energy landscape. With access to abundant renewable power and raw materials, we believe Quebec is the perfect location for Northvolt's first gigafactory outside of Europe."
Having been founded in 2016 by former Tesla executive Peter Carlsson, Northvolt boasts an existing factory in northern Sweden. Additionally, the company is currently constructing another facility in the southern part of the country, in collaboration with Volvo Cars. Furthermore, Northvolt plans to establish a gigafactory in Germany. Moreover, the company has research and development centers, recycling facilities, and assembly plants in multiple locations including Sweden, Germany, Norway, Poland, Portugal, and the United States.
Northvolt's success is reflected in its impressive order book. The company has already received orders worth $55 billion from major customers including BMW, Fluence, Scania, Volvo Cars, and Volkswagen Group.
This expansion marks a significant milestone for Northvolt as they continue to lead the way in sustainable battery production globally.
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