European demand for battery cells is expected to exceed 350 GWh by the year 2025. That is seven times the capacity of the largest gigafactory today. This number will in turn continue to triple between 2025-2030.
Europe will undoubtedly hold many gigafactories, however the input resources are still imported from other parts of the world. This poses two major issues:
- Keeping the whole life cycle green-in line with customer demands and coming EU regulations, demanding input material to be yielded from sustainable production.
- Securing intra-European supply of input materials -in times of geopolitical uncertainty and increasing protectionism.
Sweden is strategically positioned so as to mitigate these issues, whilst carrying globally comparative advantages and a great downstream case towards the rest of the European market.
CO2 emissions index
Energy production yields almost over 3000 times more carbon emissions for any other European option, as compared to battery cluster in Northern Sweden. For countries with existing batteries plants the difference is 6000:1 and for current European market leader the difference is 18000:1
Considering the expected continued risen in EU emissions allowances pricing, this difference will not only push demand towards Sweden, but also truly be felt in the bottom line of businesses in high polluting countries.
Energy pricing index
Cost of power constitues a major share of TCO seen to the entire battery production value chain. Power cost is particullary important in the early, energy intensive parts of the process, such as refinement and in the production of active materials.
With a cost point one third lower than any other EU option, with energy abundance to secure long term low pricing and with the energy being green limiting forthcoming pollution taxes - the case for northern Sweden is clearly advantageous looking at energy prices alone.
Time to market
In todays´s market situation with the automotive industry rapidly introducing new EV models and having aggressive plans for ramping up the production it is essential for the battery and battery materials suppliers to be able to build up and commission new plants efficiently.
Example: Site Skellefteå Port, 50 ha
Find the optimal site solution according to your needs by working with us. The site selection platform gives you comprehensive and comparable site offerings and solutions for your needs.
Sweden has a wide range of sites available in various stages of planning, enabling a rapid startup of new production. E.g. Permissions for Northvolt´s initial 8 GWh/y stage took only 6 months from application to approval.
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By locating your battery- or battery material production to Sweden you will get a head start in the race for carbon netural car.
- Competitive – cluster with R/D, battery manufacturing, battery material preparation and battery minerals
- Sustainable – carbon free energy mix
- Favourable power conditions – safe supply of low cost electricity