June 15, 2021: Surrounded by a forest of tall green pine trees 125 miles south of the Arctic Circle, a large electric battery factory is rapidly taking shape in the area, as large as 71 football pitches.
The project will be a gigabyte factory, a term coined by Tesla founder Elon Musk, who will describe his first high-volume plant to produce deep lithium-ion electric battery cells in the Nevada desert. Start up Northolt, founded in collaboration with two former Tesla executives, is based in Skellefteå.
But from here, as well as a base in Vasteras just outside Stockholm, it hopes to supply a quarter of Europe’s electric batteries during the global race to reduce carbon emissions. By 2030, 40% of all new cars sold will be electric, according to the latest investment bank UBS forecast, which will grow to about 100% of the new car market by 2040. “If you really look at all the automotive manufacturers’ agendas for building these electric cars, the amount of cells you need to access will be very high,” said Frederick Headland, the plant’s manager.
Although no equipment has yet been installed in the imposed gray buildings, Mr. Headland is confident that everything will be on time for production to begin by the end of 2021. Northolt aims to make enough batteries to power 300,000 electric vehicles a year. It has already received a 14 billion order from Volkswagen to build its batteries over the next decade, and has plans for a long-term partnership with Swedish truck and bus company Scania.
At least in northern Sweden, there has not been a greater hype project since miners literally struck gold 100 years ago. But for Northolt, water is now the region’s most valuable asset as the manufacturer seeks to create the “greenest battery in the world”, ensuring that its production techniques are similar to those of its products.
Renewable hydroelectric energy from the scallop stream will speed up the process of making batteries at the site, including the use of giant mixers to combine lithium, cobalt and other metals, and the drying of active ingredients in rows of industrial ovens. Is, which is just installed. Local access to raw materials and on-site battery recycling plant plans will also lower the plant’s own carbon footprint. There are still vacancies in the Green Loop, with some employees flying weekly from other Swedish cities and many others driving non-electric cars to the site.
But the firm’s efforts are far from greenwashing, according to Meth Bolen, a professor of electrical power engineering on the campus of Lilly University of Technology on the other side of the Schiffle River. “It will definitely be greener than the plans made by others. They’ve taken [a great first step] – let’s hope others follow suit.” Although Northolt’s green credentials (and perhaps its charming and remote location) have overshadowed the Swedish project, the company is one of a number of European companies entering the gig factory industry, along with Tesla.
Norwegian energy company Freyr is planning a gig factory to produce wind and hydro-fuel in Moe Rana, a remote coastal town near the country’s most famous ski resort. Daimler and BMZ have already set up an energy efficient giga factory in Germany. The French start-up is planning a facility north of Workour, Toulouse.
The UK is lagging behind its northern European neighbors, although the 235-acre (95-hectare) site in Northumberland is set to become the first operational gig factory by the end of 2023. It is run by a firm called British Volt (which has nothing to do with Northolt, Sweden).
London-based Sandy Fitzpatrick, which monitors the trends in Canalys, a global technology analyst firm, believes there will be plenty of room in the market for a new crowd of European athletes. As well as boosting the growing consumer demand for electric vehicles. She says access to local Giga factories is also an important branding strategy for European carmakers. They are under increasing pressure to present a truly sustainable business model in the wake of the so-called Dieselgate scandal, which has seen Volkswagen use illegal software to manipulate the results of diesel emissions tests.
But he believes European car and battery makers will face stiff competition from major Asian brands, many of which have already set up their own giga factories in the EU. These include LG Cam, which has a plant in Poland, and Samsung SDI and SK Innovation, which built factories in Hungary.
Back in the scaffolding, Northolt thinks it’s ticking these boxes. The company has raised 3.5 billion in funding, including a 350 million loan from the European Investment Bank, and state-funded Swedish Energy Agency, as well as German government funding, following a multi-million-dollar deal with Swedish startup Volkswagen.
The company is also working closely with universities in the region, and has the full support of local municipalities.
Northolt’s presence is expected to create 10,000 new jobs in the region, and the city already has thousands of new energy-intensive homes, electric buses, winter-friendly bicycle lanes and even plans for electric planes. Is also investing in, which is designed to create green. And a living city for the new arrival of national and international talent.
“But I think that’s good. Because we get more and more new people to travel around the world and come to our city. We get a bigger city.” “It’s a new environment in the municipality,” she agreed. “Before, people moved away from scalability, but today we see them retreat.”
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