Battery manufacturing start-up Northvolt today announced the arrival of a new battery cell gigafactory in Germany.

This is the company’s third full-scale battery plant.

Northvolt is a battery startup founded by two former Tesla executives who worked at Tesla’s first Gigafactory in Nevada with Panasonic.

The company planned to recreate the “gigafactory” concept of having a giant battery factory producing “gigawatt-hour” level battery cells for electric cars.

It has received support and launched factory projects with several automakers, including Volkswagen, and last year added Volvo to the list with a plan to build a new battery factory in Europe to support the Swedish automaker’s ambitions for electric vehicles.

In December, Northvolt announced that it had started production of battery cells at its first gigafactory, lending more credibility to its several other battery factories in partnership with automakers.

Now the company is already closing the deal on a third gigafactory:

“Today, Northvolt announces its intention to establish a battery giga-factory in Heide, Schleswig-Holstein, in northern Germany. With a potential annual production capacity of 60 GWh, Northvolt Drei will supply the European market a supply of sustainably produced lithium-ion batteries, sufficient for around one million electric vehicles.

In addition to its other two gigafactories, it is expected to increase Northvolt’s total capacity to 170 GWh of battery cell production when the new factory goes into production in 2025.

Peter Carlsson, co-founder and CEO of Northvolt, commented on the new announcement:

“We are delighted to announce Northvolt Drei – a project which fits well into a promising future cluster of cleantech companies emerging in northern Germany and advances the wider European transition to a sustainable society within which Germany plays a crucial role.”

Part of the reason the new plant landed in Heide, Schleswig-Holstein, is because the region is known for having the cleanest energy grid in Germany thanks to onshore and offshore wind power. , which is also boosted by clean energy supplied by the grid interconnections for Denmark and Norway.

Carlson added,

“How we produce a battery cell is important. If you use coal in your production you put a fair amount of CO2 into your battery, but if we use clean energy we can build a very durable product. Our philosophy is that new energy-intensive industries, such as battery manufacturing, should be established in actual geographic proximity to where clean energy is produced,”

Battery cell production is an energy-intensive manufacturing process and access to clean energy makes a big difference.

Northvolt has also committed to establishing a recycling facility at the new plant. The company has a strong commitment to battery recycling and plans to use a high percentage of recycled battery materials in its future production.

Last year, Northvolt claimed to have produced the first battery cell from “100% recycled nickel, manganese and cobalt”.

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