Volkswagen to take a position ~US$1B in joint battery actions with Northvolt AB; buying ~20% of shares, JV for 16 GWh battery manufacturing unit
Volkswagen AG is investing some €900 million (US$1.019 billion) in joint battery actions with Northvolt AB. A part of the sum is meant for a three way partnership with the Swedish battery cell producer, an additional share will go on to Northvolt AB. A part of the sum is a component of Northvolt’s just-completed $1-billion fairness capital elevate, led by Volkswagen Group and Goldman Sachs Service provider Banking Division alongside BMW Group, AMF, Folksam Group and IMAS Basis.
Volkswagen will purchase about 20% of the shares in Northvolt AB and may have one seat on the Board of Administrators, topic to approval underneath antitrust laws.
Moreover, a 50/50 three way partnership to construct a 16 GWh battery cell manufacturing unit in Europe is deliberate through the course of this 12 months. It’s supposed to find the manufacturing unit in Decrease Saxony (Salzgitter) if the preconditions for this are fulfilled.
Building of the manufacturing facility is scheduled to begin, on the earliest, in 2020. Battery cell manufacturing for Volkswagen is slated to start across the finish of 2023/starting of 2024.
Volkswagen is laying the groundwork in any respect ranges for the profitable implementation of its electrification technique. With Northvolt, we’ve now additionally discovered a European associate whose know-how and sustainable, CO2-optimized battery cell manufacturing processes will allow us to advance cell manufacturing right here in Germany. The prerequisite for that is, after all, the creation of the required financial framework.—Dr. Stefan Sommer, Member of the Volkswagen AG Board of Administration answerable for Procurement
Beneath its electrification technique, the Volkswagen Group’s annual capability necessities in Europe alone from 2025 are in extra of 150 GWh; the corporate expects demand on the same scale in Asia.
Northvolt is a European provider of sustainable, high-quality battery cells and techniques. The corporate is presently establishing pilot manufacturing of battery cells and a battery cell manufacturing facility (Northvolt Ett) with an preliminary capability of 16 GWh in Sweden. The gigafactory will probably be expanded to a minimum of 32 GWh.
After coming into numerous provide agreements, a major share of the manufacturing volumes from Northvolt Ett has been offered to key clients, amounting to a mixed order worth of greater than $13 billion by way of 2030.
The European Funding Financial institution has accredited in-principle a $400-million (€350-million) mortgage as part of the entire funding for Northvolt Ett. Along with extra debt being raised, the institution of the preliminary 16 GWh of lithium-ion battery cell manufacturing capability at Northvolt Ett is enabled. Constructing development work will start in August with large-scale manufacturing estimated to start in 2021.
Based in 2016 to allow the European transition to a decarbonized future, the corporate has made swift progress on its mission to ship the world’s greenest lithium-ion battery with a minimal CO2 footprint and the best ambitions for recycling. Other than Volkswagen AG, Northvolt’s industrial companions and clients embrace Scania, ABB, BMW, Siemens, Vattenfall and Vestas.