Northvolt AB is planning to move forward with two major new battery plants in parallel, instead of just one, due to strong demand for electric vehicles, according to a person familiar with the move.
(Bloomberg) — Northvolt AB is planning to move forward with two major new battery plants in parallel, instead of just one, due to strong demand for electric vehicles, according to a person familiar with the move.
The Swedish battery maker is still looking at Germany, the US and Canada for the two sites, the person said, declining to be named discussing private information.
The move to target a concurrent capacity build-out makes it more likely for a site in Heide, northern Germany, to go ahead, which is located close to renewable power sources.
Northvolt, which counts Volkswagen AG and BMW AG among its customers, previously warned it might postpone the German plant in favor of investment in North America because of rich incentives on offer. Building two factories at the same time is a “distinct possibility,” according to a spokesman.
The company first announced the multi-billion euro plant in Germany’s Heide over a year ago with a target of starting production in late 2025 with an eventual annual capacity of 60 gigawatt-hours, enough to power roughly 1 million electric vehicles. That timeline was at risk of being pushed out due to the attraction of US President Joe Biden’s green tech incentives as part of the Inflation Reduction Act.
The tax credits are set to cover about 30% of cell manufacturers’ operating costs, Northvolt calculated. Europe’s most advanced home-grown battery play, Northvolt last year started shipments from its cell plant in northern Sweden.
The European Union, alongside national incentives, is stepping up efforts to level the playing field with the US on attracting future technologies promising to reduce CO2 emissions. The bloc already offers generous support, but getting access to funds is an overly cumbersome process, industry players say.
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