The European Investment Bank (EIB) has signed a $350 million loan agreement to support the financing of Europe’s first home-grown gigafactory for lithium-ion battery cells, Northvolt Ett, in Sweden. [Photo: Northvolt]
Swedish battery maker Northvolt says Europe is catching up with Asian rivals in the manufacturing of car batteries but warns that more efforts are needed to build a complete supply chain “ecosystem” in the EU.
The European Commission launched a “European battery alliance” in 2017, bringing together carmakers, chemical groups and engineering firms, with the aim of building a battery value chain in Europe that is able to compete with Asian and US manufacturers.
Northvolt is quickly becoming Europe’s go-to company for home-grown batteries. In mid-July, BMW inked a €2 billion supply deal, while Volkswagen has become the main investor behind a new factory in northern Germany.