The Swedish Land and Environment Court has granted Volvo Cars and Northvolt the necessary approval to proceed with their collaborative battery cell factory project in Gothenburg, originally announced in the previous year. The establishment of Novo Energy, their joint venture, will now initiate construction later this year.
Anticipated to have an annual capacity of up to 50 GWh, the factory is projected to commence operations in 2026 and provide employment opportunities for over 3,000 individuals. Novo Energy’s Gothenburg-based gigafactory will be the second battery cell production facility for Northvolt in Sweden, with their existing facility located in Skellefteå. Adrian Clarke, CEO of Novo Energy, expressed his satisfaction with the recent development, stating, “This is a significant milestone for us. Now, the real work can commence, and we can begin laying the groundwork for Sweden’s second gigafactory, and Gothenburg’s first, dedicated to producing the green batteries of the future.”
The decision to establish the factory in Gothenburg’s Torslanda district was announced by Volvo Cars and Northvolt in February 2022. Strategically located near Volvo’s car manufacturing plant, the initial aim was to have the facility operational by 2025. However, Novo Energy now considers 2026 to be a more realistic target.
While the exact investment figures for the new plant were not disclosed by the partners, it was revealed in 2022 that the collaborative endeavor planned to invest a total of 30 billion Swedish kronor, equivalent to approximately 2.9 billion euros. This investment includes the construction of a joint research facility focused on battery technology.
In addition to supplying battery cells to Volvo’s Torslanda plant, the Novo factory intends to incorporate the cells into both Volvo-branded battery electric vehicles (BEVs) and Polestar vehicles. Previously, Polestar exclusively manufactured their cars in China, with the possibility of expanding production to the United States in 2024. Further details regarding the battery cell specifications produced in the forthcoming factory have not yet been disclosed. Although a press photo released last year depicted a prismatic cell, specific information on the cell chemistry or energy content remains unavailable.
