Source: Deutsche Welle

Northvolt a Swedish car battery maker, announced that it had raised $1 billion (€900 million) in cash to finance the construction of Europe’s biggest car battery manufacturing facility. German automaker Volkswagen will be one of its primary investors.

The factories are intended to compete with US manufacturer Tesla’s Gigafactory in Nevada, and Asian manufacturers gearing up to serve the European market.

Nothvolt and Volkswagen will also be entering a separate joint venture to build a battery plant in Salzgitter, Germany. Salzgitter is located in Volkswagen's home state of Lower Saxony, which is also a stakeholder in the company.

Construction is slated to begin in 2020, and production to begin in late 2023, or early 2024. Volkswagen says it will invest close to €1 billion in the Salzgitter plant.

European countries are keen to invest in the new technology, with German Economy Minister Peter Altmaier promising €1 billion in funds for companies building lithium ion batteries in Germany and Europe, and France promising €700 million toward such endeavors.

Asian manufacturers, who have a leg up on the Europeans technologically, are also looking to capitalize on the coming wave of electromobility, with companies such as China’s CATL announcing plans to build a factory in Erfurt, Germany.

Source: Deutsche Welle