Siemens AG will invest €10 million in Swedish lithium-ion battery startup Northvolt AB, collaborate on manufacturing and ultimately purchase batteries from Northvolt's planned factory, the companies announced May 25.
It was the latest in a series of recent investments aimed at creating a new lithium-ion battery producer for transportation and energy sectors to address what Siemens and Northvolt called Europe's "major battery deficit." In addition to boosting Europe’s regional supply of lithium-ion batteries, Northvolt aims to deliver "the greenest lithium-ion batteries in the world," CEO Peter Carlsson said in a news release. The company's manufacturing plant will rely on Sweden's low-carbon power generation mix, which relies almost exclusively on nuclear and renewables, according to the International Energy Agency. In addition, Northvolt aims to industrialize a process for recycling lithium-ion batteries.
Northvolt in April started building its new laboratory near Stockholm, Sweden. |
Swedish wind and hydroelectric generator Skellefteå Kraft AB also committed €10 million to Northvolt in a partnership that aims to combine batteries with hydropower and district heating projects, the companies said May 23. In February, the board of directors of the European Investment Bank approved a €52.5 million loan for a Northvolt Labs research facility near Stockholm that started construction in April. Heavy-duty truck manufacturer Scania AB, an affiliate of Volkswagen AG, in January committed €10 million to Northvolt to develop battery cells for large commercial vehicles.
Northvolt, which plans to build a full-scale factory in Sweden by 2020, previously raised €10 million each from Vestas Wind Systems A/S and ABB Technology Ventures Ltd., the venture capital arm of Swiss company ABB Ltd., according to S&P Capital IQ data. Northvolt has exceeded its target of raising €100 million through a fundraising round launched in 2017 and plans to initiate a larger fundraising effort in 2018, the company said.
In addition to its investment, Siemens intends to support Northvolt with manufacturing planning, design software and automation, and is "exploring potential areas for joint development programs." The German technology giant also plans to purchase Northvolt batteries once the startup's factory in Skellefteå, Sweden, begins production. With a planned battery cell production capacity of 32 GWh, it would be Europe's largest lithium-ion battery factory.

