Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • At 4880 mm-long, the ID6 X and ID6 Crozz are VW brand's biggest production EVs to date.
      VW targets Chinese families with ID6, biggest EV to date
      03-mb-eqs-side-driver-moving.jpg
      Mercedes EQS tops Tesla in EV range, for now
      How Magna Steyr balances customers ranging from BMW and Mercedes to Fisker and Sony
      Richard Parry-Jones, left, with J Mays, Ford's vice president of design, introducing the Ford EX Concept at the 2001 Detroit auto show.
      Richard Parry-Jones, architect of some of Ford's greatest hits, dies at 69
    • Richard Parry-Jones, left, with J Mays, Ford's vice president of design, introducing the Ford EX Concept at the 2001 Detroit auto show.
      Richard Parry-Jones, architect of some of Ford's greatest hits, dies at 69
      Nissan will furlough 800 UK workers as chip shortage cuts production, report says
      339034473.jpg
      Vingroup eyes second VinFast car plant, report says
      8STELLANTIS-MAIN_i.jpg
      U.S. judge denies Stellantis supplier bid to compel chip supply for Jeep plant
    • 8STELLANTIS-MAIN_i.jpg
      U.S. judge denies Stellantis supplier bid to compel chip supply for Jeep plant
      AUTOMOTIVE NEWS EUROPE PODCAST: April 15, 2021 | CLEPA exec explains why supplier bullishness is on the rise
      Nidec challenges Bosch, Continental, Siemens for e-motor lead in Europe
      Chip stock-MAIN_0.jpg
      Renesas resumes operations of damaged clean room
    • 03-mb-eqs-side-driver-moving.jpg
      Mercedes EQS tops Tesla in EV range, for now
      01-mb-eqs-front-full-moving.jpg
      view gallery
      16 photos
      Mercedes EQS
      For the EQS, Mercedes likes what it sees in the mirror
      Mercedes EQS to offer hands-off self-driving tech
    • Car exhasut Berlin.jpg
      German automakers react positively to weaker Euro 7 regulations
      Audi's plant in Gyor, Hungary, VW Group's biggest engine factory, built 1.6 million engines in 2020.
      VW brand will phase out combustion engines, CEO says
      The sales rollout of the ID4 is starting in Europe, the U.S. and China
      The UK's conflicting stance on EVs
      Valeo joins Bosch, GM, others in pledge for carbon neutrality
    • Europe sales surge 63% in March as market slowly recovers
      With Opel profitable again, CEO looks to international expansion
      Spain offers EV subsidies
      Stellantis brands dominated van sales in EU in 2020, figures show
    • Song Chang-hyeon will lead Hyundai's new Transportation-as-a-Service division.
      Hyundai names chief for new mobility division
      VW Diess.jpg
      How Tesla's Musk tried and failed to tempt VW's Diess to run EV maker
      Volvo CFO Bjorn Annwall
      Volvo promotes Europe boss Annwall to finance chief
      andersson.jpg
      Bo Andersson steps down from Yazaki
    • Geneva Auto Show
    • Frankfurt Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Mobility
    • Segment Analysis
    • Latest Launches
    • Supplier Spotlight
    • Europe By The Numbers
    • Path out of chip shortage: New capacity, new thinking -- and patience
      Apple, Nio, other auto newcomers get creative to avoid Tesla's 'production hell'
      Photo illustration for cloud computing
      How Amazon, Google are transforming the auto industry
      EV-only future looks closer than ever in Europe
    • Opel CEO explains what's next for the brand after 'challenging' 2020
      Ford of Europe plans more changes to reposition business for EV-focused future
      Renault CEO bets on 'winning horses' for turnaround
      Nvidia CEO says software will soon define the car, drive profit
    • 03-mb-eqs-side-driver-moving.jpg
      Mercedes EQS tops Tesla in EV range, for now
      Andy Conghui An, president of Zhejiang Geely Holding Group Co., on the production line of the manufacturing plant for Zeekr, Geely's new EV unit, in Ningbo, Zhejiang province, on April 14, 2021.
      Geely targets Apple, Big Tech with upstart EV unit
      The Fiat New 500 battery-powered hatchback sold in Europe will be joined by other EVs.
      Stellantis outlines electrification targets for Europe, U.S.
      Suzuki races into plug-in-hybrid sector with most powerful model
    • BlueCruise-MAIN_i.jpg
      Ford answers Tesla's Autopilot with 'BlueCruise' hands-free system
      How a U.S. tech firm aims to save 1 million lives
      WeRide robotaxi fleet in China
      Nissan-backed startup to test driverless vehicles
      France could offer cash to scrap cars for electric bikes
    • Smart EQ ForTwo electric being charged
      Minicars race toward electric future
      EVs make huge gains helped by incentives, tougher CO2 rules
      EVs, surging SUVs to hit Europe's biggest segment
      Wagons hold market share, but costly EV shift looms
    • Mercedes EQS to offer hands-off self-driving tech
      Ferrari shunned electrification until it launched the SF90 Stradale plug-in hybrid in 2019.
      Ferrari brings forward launch of first EV
      Mercedes EQS camouflaged
      Mercedes enters new era with flagship sedan going electric
      The Audi Q4 e-tron quattro has a prominent grille, big wheels and defined wheel arches. Shown is the Audi Q4 Sportback 50 e-tron quattro.
      Audi attacks EV mass market with Q4 e-tron
    • Vitesco's optimism about EV shift grows as spinoff nears completion
      How GKN is transforming to gain from e-powertrain shift
      Marelli CEO expects e-powertrains to provide long-term boost
      Veoneer boss expects to reach key milestone this quarter
    • Europe sales by model, February: Tesla, Ferrari, Lotus, Aston Martin rise despite down market
      Top 10 sellers by market, 2 months: Skoda Octavia makes the cut in 18 out of 27 countries
      Nissan Qashqai
      Turkey sales, February: Nissan, Fiat, Skoda report strong gains
      Russia sales, February: Market bounces back with small increase
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
    • For the EQS, Mercedes likes what it sees in the mirror
      Sales of the New 500 have been slow since the vehicle's launch last year.  The three-door New 500 hatchback is shown.
      Fiat's New 500 is zippy, agile but pricey
      How a U.S. tech firm aims to save 1 million lives
      Volvo Google infotainment
      Volvo expands upon positive Google experience
    • Understanding the impact of design on marketing, brand and user experience
      Ex-Aston Martin CEO Palmer calls on UK to intensify battery commitment
      Why Apple must target the $230B luxury car market
      Apple car: Who will build it? Magna Steyr possible candidate
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
    • 01-mb-eqs-front-full-moving.jpg
      view gallery
      16 photos
      Mercedes EQS
      view gallery
      9 photos
      Rimac's Croatian campus
      mercedes_eqs_int_6.jpg
      view gallery
      12 photos
      Mercedes EQS Interior
      Green Peugeot 308 1.jpg
      view gallery
      17 photos
      Peugeot 308
    • koenigsegg-gemera-front-quarter-passenger-01.jpg
      view gallery
      14 photos
      Koenigsegg Gemera
      view gallery
      21 photos
      Fiat New 500
      view gallery
      11 photos
      Aston Martin V12 Speedster
      view gallery
      13 photos
      Audi A3 Sportback 2020
    • At the Beijing show, sales rebound and EV boom mix with murky outlook
      3BEIJING-MAIN_i.jpg
      Beijing show to highlight competition for local EV makers
      Beijing auto show delayed due to coronavirus
      Maserati will unveil Ghibli hybrid at Beijing show
    • view gallery
      11 photos
      Mercedes-Benz Vision EQS
      view gallery
      11 photos
      Renault Captur
      view gallery
      5 photos
      Mercedes-Benz AMG GLB 53
      view gallery
      10 photos
      Mercedes-AMG GLE 53 Coupe
    • view gallery
      8 photos
      VinFast Lux SA2.0 SUV
      view gallery
      8 photos
      VinFast Lux A2.0 sedan
      view gallery
      7 photos
      Toyota Corolla station wagon
      view gallery
      9 photos
      Seat Tarraco
    • view gallery
      8 photos
      MG Cyberster concept
      view gallery
      4 photos
      Nio ET Preview
      view gallery
      7 photos
      Infiniti Qs Inspiration concept
      view gallery
      5 photos
      BMW 3-series LWB
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress Conversations
    • ANE Shift
    • ANE Rising Stars
    • ANE Eurostars
    • ANE Leading Women
    • Watch Again
      • July 9: EU green deal in the COVID-19 new normal
      • July 16: Assisted or Autonomous Driving
      • July 23: Challenges in Electrification
      • July 30: The Road Ahead for Europe
    • Meet the 2020 winners
    • Watch the 2020 Rising Stars awards again
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Cloud: A springboard for future competitiveness
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Suppliers
September 30, 2020 06:14 AM

VW helps Northvolt to fund EV battery expansion

  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Volkswagen Group helped Swedish battery cell partner Northvolt to raise $600 million in fresh equity to fund Northvolt's growth plan.

    As the first leading European entry in the battery cell market, Northvolt has become a standard bearer of the European Union's push to reduce the reliance of the region's automakers on Asian battery cell producers.

    The European Commission estimates that a complete European battery value chain -- including processing materials, manufacturing cells and recycling metals -- can reach a total annual value of 250 billion euros and provide up to 4 million jobs across the bloc.

    The supplier is also important to VW Group, which forecasts it will need an annual supply of cells amounting to 150 gigawatt hours for Europe alone from 2025. By then the group will have invested 33 billion euros over five years in its EV model range.

    VW said in June 2019 it would therefore acquire a 20 percent stake in Northvolt as part of its plan to invest with Northvolt in a gigafactory in Salzgitter near VW's Wolfsburg headquarters.  

    The plant, Northvolt's second, is expected to produce 16 GWh in its first expansion phase when it starts production at the end of 2023.

    "We maintained the size of our stake," a VW spokesperson said.

    Other investors in the Northvolt financing round also included Swedish truck maker

    Scania, Spotify co-founder Daniel Ek and the IMAS Foundation, an investment arm of the company that operates IKEA. 

    Peter Carlsson, co-founder and CEO of Northvolt, said his company needed the funds to be able to scale up more quickly than rivals to have a competitive edge.

    "We are in the middle of a race to establish manufacturing capacity in Europe," he said in a statement.

    Northvolt's first gigafatory, the Ett in Sweden, with a planned annual capacity of 40 GWh, is scheduled to start production next year and the company envisions eventually an output of 150 GWh in Europe by 2030.

    The supplier is the first flagship European startup that owns and operates an EV battery cell manufacturing plant on the continent. It counts BMW along with Volkswagen as customer.

    The issue of battery cell supply has become an acutely political one in Europe, which aims by 2030 to lower CO2 emissions by 55 percent compared with its 1990 levels under new proposals tabled by the EU Commission.

    Already in 2017, a year after Northvolt was founded by two former Tesla employees, Brussels established a battery alliance with the strategic goal of minimizing dependence on Asia's battery cell manufacturers.

    Late last year the EU approved a 5-billion-euro project for two gigafactories to be operated by PSA Group and Saft Battery, a subsidiary of French oil giant Total. A quarter of the investments will be financed by French and German taxpayers.

    "Europe has also seen the most rapid growth of any region in planned lithium ion battery production capacity, with its global share set to reach 14.7 percent by 2024, overtaking the United States and Asia (when) excluding China," said Maros Sefcovic, EU Commission Vice-President, in May. The Slovak national coordinates the battery alliance personally.

    The issue has taken on even greater significance after the coronavirus pandemic highlighted a gradual breakdown in the multilateral system. Countries were prepared to risk deaths elsewhere if it meant protecting their own citizens.

    Examples of this include the U.S., which was accused of attempting to gain exclusive rights to a potential vaccine developed in Germany. Other key pharmaceuticals were only produced by certain countries.

    "One of the lessons of the COVID-19 crisis is the need to reduce dependency and strengthen diversity and security of supply," the Commission stated earlier this month after placing lithium on its list of 30 critical raw materials that also includes cobalt.

    Northvolt is not just competing for leadership among Asian cell manufacturers like China's CATL or LG Chem of South Korean -- many of whom are investing in local European production sites to meet expected demand.

    EV pioneer Tesla said last week at its Battery Day event that it aims to increase the share of cells it manufactures directly to 3,000 GWh annually by 2030 from a projected 100 GWh (partly for stationary storage applications) in 2022 to reduce its own dependence on Asian suppliers including Panasonic and develop its own proprietary cell technology.

    Tesla confirmed in the process that its planned German assembly plant in Gruenheide near Berlin will also manufacture EV battery cells.

    RECOMMENDED FOR YOU
    How Magna Steyr balances customers ranging from BMW and Mercedes to Fisker and Sony
    Recommended for You
    How Magna Steyr balances customers ranging from BMW and Mercedes to Fisker and Sony
    How Magna Steyr balances customers ranging from BMW and Mercedes to Fisker and Sony
    U.S. judge denies Stellantis supplier bid to compel chip supply for Jeep plant
    U.S. judge denies Stellantis supplier bid to compel chip supply for Jeep plant
    Continental, Amazon Web Services launch automotive software platform
    Continental, Amazon Web Services launch automotive software platform
    Cloud: A springboard for future competitiveness
    Sponsored Content: Cloud: A springboard for future competitiveness
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • 2020 Media Kit
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Geneva Auto Show
        • Frankfurt Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Mobility
      • Segment Analysis
      • Latest Launches
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress Conversations
        • Watch Again
          • July 9: EU green deal in the COVID-19 new normal
          • July 16: Assisted or Autonomous Driving
          • July 23: Challenges in Electrification
          • July 30: The Road Ahead for Europe
      • ANE Shift
      • ANE Rising Stars
        • Meet the 2020 winners
        • Watch the 2020 Rising Stars awards again
      • ANE Eurostars
      • ANE Leading Women
    • More
      • Publishing Partners
        • Capgemini: Cloud: A springboard for future competitiveness
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us