Volvo Cars and Northvolt, in a joint venture announced in February 2022, have reached a significant milestone in their plan to establish a battery cell factory in Sweden. This ambitious project recently received building permission from the Swedish Land and Environment Court, and in August, the city planning committee in Gothenburg granted building permits for the initial construction phase.
The factory, set to be operated by the Volvo-Northvolt joint venture known as Novo Energy, officially initiated its construction process with a groundbreaking ceremony. While the construction work will officially commence on October 1st, preliminary preparations are already underway, focusing on aspects such as cooling and power supply for the facility.
Adrian Clarke, CEO of Novo Energy, expressed enthusiasm for the project, stating, “It’s a great day for us, a real milestone. We are grateful to everyone who contributes in different ways. The know-how and innovation that exists here in Gothenburg is fantastic. We have been able to grow to 200 people in a short time, but we need to continue to grow rapidly, and scale up as our entire industry grows.”
The battery cell factory, once fully operational, has the potential to produce up to 50 gigawatt-hours (GWh) of batteries annually. It is expected to provide employment to more than 3,000 individuals upon completion, making it a significant contributor to the local economy.
The Novo plant represents Sweden’s second battery cell production facility, with the first being Northvolt’s plant in SkellefteĂ„. Initially, Volvo Cars and Northvolt aimed to have the Gothenburg plant operational by 2025, but the revised timeline now suggests a completion date in 2026.
Although the exact investment figures for the Gothenburg plant have not been disclosed, it was previously announced that the partners planned to invest a total of 30 billion Swedish kronor, equivalent to approximately 2.9 billion euros. This investment also covers the establishment of a joint research facility focused on battery technology.
The Novo factory’s significance extends beyond Volvo’s Torslanda plant, as its battery cells will be utilized in both Volvo-branded electric vehicles (BEVs) and Polestar vehicles. Polestar, known for manufacturing its cars primarily in China, is expected to expand to the United States in 2024. Detailed information about the battery cell specifications from the new factory has not yet been made public, leaving questions about cell chemistry and energy content unanswered.
