Northvolt is to invest US$200m in expanding its battery systems capabilities in Gdansk, Poland.

Starting production in 2022, the new factory will have an initial annual output of 5 GWh and potential future capacity of 12 GWh.

“Securing battery cell manufacturing capacity in Europe is key for its industrial future, but what is equally critical is the industrial capacity for integrating cells into real-world solutions,” said Northvolt co-founder and CEO, Peter Carlsson.

“It is this the new factory will deliver; sophisticated, sustainable energy storage systems to support the transformation of Europe’s electricity grid and its industry.”

The investment will facilitate a ramp-up in the manufacturing capacity of battery modules and systems in order to fulfil contracts Northvolt has secured with customers seeking long-term, high-volume supply agreements for complete battery system solutions across grid and industrial markets.  

The project builds on the company’s start-up of a battery systems industrialisation plant in Gdansk in 2019.  

The development of the new factory has already begun with expectation the first phase of construction will commence in autumn, 2021, for a start of production in 2022. 

The initial phase of the project will establish an annual output of 5 GWh of modules and packs. A second phase of the project will see the factory expand to a total capacity of 12 GWh. 

Including a new engineering R&D centre of excellence to be established in conjunction with the factory expansion, the initiative will create 500 new jobs in the Gdansk region. 

“Northvolt has been present in Poland for three years and we are impressed by both the professionalism and calibre of the engineers and manufacturing staff we’re engaged with in our activities here,” added Northvolt Battery Systems president, Emad Zand.

The factory will receive its supply of lithium-ion battery cells from the Northvolt Ett gigafactory, located in Skellefteå, Sweden.

As Northvolt’s ambition is to continue to build on the low emission production platform established in Sweden within its operations in Poland, the new factory will be powered with renewable energy, including on-site renewable energy generation.