Northvolt and Stora Enso has today announced the signing of a letter of intent on a purchase of the Kvarnsveden Mill and the surrounding industrial area in Borlänge, Sweden. Northvolt will develop the site into a manufacturing plant for active material and battery cells, reusing and refurbishing much of the existing facilities and site infrastructure.
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The gigafactory is expected to start the first part of its operations in late 2024 and will employ up to 1,000 people, utilizing 100 percent clean energy from the region. Fully built out, the site will have a potential annual production capacity of more than 100 gigawatt hours of cathode material, which will enable cell assembly at multiple Northvolt facilities. The site will also feature cell production.
The world’s greenest lithium-ion battery
Founded in 1900, the mill produced pulp and paper for over 120 years until its closure in 2021. The agreement is the result of a strong commitment by Stora Enso to find the best long-term solution for its former employees and the city of Borlänge. Key managers from the Kvarnsveden site will stay on during a transfer period to utilize the current infrastructure and enable a swift transformation.
The project allows Northvolt to deliver the world’s greenest lithium-ion battery and establish a sustainable supply of batteries to enable the decarbonization of society. The factory will play a key role in fulfilling more than 50 billion US dollars in orders from key customers and joins a wider European production network of facilities being developed together with partners in Sweden, Norway, Poland, Germany and Portugal. (mfo)
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