Sweden Gigafactory Production Begins... Electric Vehicles Production Scale of 1 Million Units
Tesla Prepares for Mass Production in Berlin... LG, SK, and CATL Also Open and Expand Factories
[Asia Economy Reporter Byunghee Park] As Swedish battery company Northvolt begins mass production of batteries, competition in the European battery market is expected to intensify further. American electric vehicle company Tesla is also preparing to operate its Gigafactory near Berlin, Germany, while domestic battery companies LG and SK, as well as Chinese CATL, are opening and expanding battery factories in Europe.
According to major foreign media on the 29th (local time), Northvolt announced in a statement that it produced its first battery on the 28th at its Gigafactory in Skellefte?, Sweden.
The Skellefte? Gigafactory is expected to produce batteries on an annual scale of 60GWh once fully operational. This capacity can supply batteries for 1 million electric vehicles.
Northvolt’s founder, Peter Carlsson, said, "The first battery production only signifies the beginning," adding, "We will significantly expand production over the coming years to enable Europe’s transition to eco-friendly energy." Carlsson retired after serving as an executive at Tesla and founded Northvolt in 2015.
Northvolt stated that it has already received orders worth $30 billion. Its largest shareholder, German Volkswagen, ordered batteries worth $14 billion. Northvolt is a battery company gaining attention in Europe, with investments from BMW, Volvo, and IKEA besides Volkswagen. Daniel Ek, CEO of Spotify, is also a shareholder in Northvolt. Northvolt was valued at $12 billion during its fundraising in June.
On the 10th, Northvolt signed an investment agreement worth 30 billion kronor (approximately 3.9 trillion KRW) with Volvo, announcing plans to expand its business not only in Europe but also in the U.S. and Asian markets. According to the investment agreement with Volvo, Northvolt plans to build another battery factory in Europe, with the new factory site to be announced early next year. Northvolt plans to build two more factories in Europe alone and aims to secure a production capacity of 150GWh by 2030.
Tesla’s Gigafactory in Berlin, Germany, whose construction plan was announced at the end of 2019, is also about to start operations. Tesla reportedly submitted an environmental approval application for the Berlin Gigafactory operation in mid-this month. It is expected that the Gigafactory could begin operations as early as next month.
Initially, it was expected that the Berlin Gigafactory would start operations in November last year, but the operation has been delayed due to opposition from environmental groups. Environmental groups pointed out that the Gigafactory could consume a large amount of water and affect the surrounding ecosystem.
According to the plan submitted by Tesla, the production capacity of the Berlin Gigafactory is known to be around 50GWh.
Domestic battery companies SK and LG are also strengthening their efforts to target the European market. Foreign media reported that LG plans to open a factory in Poland next year, and SK plans to expand its battery factory in Hungary. Chinese battery company CATL is also scheduled to open a battery factory in Germany next year.
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