The
European Bank for Reconstruction and Development (EIB) said on February 12 that
it has approved a loan request from Northvolt AB for the construction and
operation of a first-of-a-kind demonstration plant in Västerås, Sweden for the
manufacturing of li-ion batteries.
The loan,
which could reach €52.5 million, is set
to be supported by the European Commission through InnovFin, under the “Energy
Demo Projects” (EDP) Facility, the EIB said.
European
Commission Vice President for the Energy Union Maroš Šefčovič hailed the EIB’s
decision to support the project. “Batteries are a strategic component of our
competitiveness and to capture a new European market worth 250 billion euros
annually as of 2025, we need to act fast. I, therefore, welcome the decision taken
by the EIB, which will help this industry-led project take off the ground. It
is important to pool all available instruments at the national and European
level, such as InnovFin,” Šefčovič said, adding that the European Battery
Alliance will continue supporting prospective partnerships throughout the value
chain.
Research,
Science, and Innovation Commissioner Carlos Moedas also welcomed the EIB loan,
which enables “real market-creating innovation”. “With 40% of all patents for
renewable technologies belonging to European companies, the EU is undoubtedly
leading the fight against climate change. But many of Europe’s great
innovations in clean energy technologies end up being produced elsewhere,
meaning that others make much more money out of European innovations than we
do. Today’s decision will help to correct this,” Moedas said late Monday.
According
to the EIB, the parties will now finalise negotiations and after signing
Northvolt is expected to begin the construction of its demonstration line in the
coming months. This facility will serve to show the commercial viability of the
concept and to qualify and industrialise products together with Northvolt’s
customers, the EIB said, adding that the produced batteries are targeted for
use in transport, stationary storage, industrial, and consumer applications.
The
demonstration site will also comprise a research facility and employ between
300-400 people. The launch of the demonstration plant is a key step towards the
establishment of Northvolt’s large-scale li-ion battery factory in Skellefteå,
eventually targeting a production of 32 GWh worth of battery capacity annually.
“The Bank
is fulfilling one of its main purposes by supporting this type of research and
development in Europe,” EIB Vice-President Ambroise Fayolle said. “With the
growing momentum of clean energy and electric mobility, batteries will become
ever more important. Europe is currently lagging behind when it comes to
battery manufacturing and this highly innovative and strategic project deserves
European backing to fill that gap,” Fayolle added.
Northvolt
CEO Peter Carlsson noted that Europe is moving rapidly towards electrification.
“Northvolt’s objective is to build the world’s greenest battery to enable the
transition. With the support from the European Investment Bank and the European
Union, we are now one step closer to establishing a competitive European
battery manufacturing value chain,” he added.
https://www.neweurope.eu/article/eu-helps-northvolt-european-battery-project-take-off-ground/