Sweden celebrates the 5th anniversary of the EBA with establishment of a second gigafactory

At the launch of the European Battery Alliance (EBA) in 2017 there was virtually no cell production capacity in Europe. And Northvolt’s endeavour to build a battery manufacturing plant was seen with a lot of scepticism.

Today, Europe’s green industrial revolution is a fact. The EBA has in just 5 years turned Europe into a hotspot for investments along the entire battery value chain; rapidly closing the investment gap with its major Asian competitors. Europe is indeed today the second largest battery cell producer in the world after China.

This advancement, driven by EBA250 – the industrial development programme of the EBA coordinated by EIT InnoEnergy – has only been achieved thanks to the strategic approach of decision makers, investors and ambitious industrial stakeholders. The accomplishments and next steps of this industrial alliance will be the focus of the 6th EBA Ministerial Meeting on February 23rd, 2022.

Another major step in the establishment of a European battery industry is today’s announcement by Volvo Cars and Northvolt to invest approx. €2,9 billion (30B SEK) in the establishment of a second Gigafactory in Sweden that will be located in Gothenburg.

With this additional production capacity of 50 GWh, Sweden will be the second largest cell producer in Europe in the coming decade, only superseded by Germany based on current public announcements of battery production capacity.

The decision to invest in cell production capacity is also important from a regional development perspective. Following Volvo Cars and Northvolt announcement, the Västra Götaland region plans to invest several millions in the coming four years:

• Approx. €2,4 million (25 MSEK) in a programme for research, development and education to support the electrification of the transport sector
• Approx. €4,3 million (45 MSEK) for a training centre for the industrial shift to electrification.

Northvolt estimates the creation of 3000 new jobs with the establishment of this second battery manufacturing plant.