Swedish battery maker North Volt on Wednesday revealed production of the first lithium-ion battery cell at its plant in Skelleftea, meeting a deadline to start production at the plant before the end of 2021.
North Volt, which competes with Tesla’s battery manufacturing division and was valued at $12 billion by investors in June, said it is the first battery of its kind designed, developed and fully assembled in its so-called gigafactory by a local European battery company.
A gigawatt plant can be classified as a large scale plant where annual production is measured in gigawatts per hour (GWh). The annual production of North Volt in Skelleftea is expected to be 60 GWh.
North Volt CEO and Co-Founder Peter Carlson said: “Over the coming years, we look forward to North Volt significantly expanding its production capacity to enable the European transition to clean energy.”
Currently, the majority of electric car batteries in the world are made in the United States and Asia, and North Volt hopes to change that.
Although less than six years old, North Volt has signed more than $30 billion in purchase deals with customers including carmakers BMW, Volkswagen, Volvo and Polestar.
While North Volt indicated that commercial deliveries will begin in 2022, adding that production capacity will increase to 60 gigawatt-hours in the coming years, which is enough to supply batteries for about one million electric cars.
The company has raised more than $6.5 billion from a group of investors to help it expand its operations.
Goldman Sachs and Volkswagen co-led the latest funding round, the largest of its kind to date, by Goldman Sachs and Volkswagen along with new investors including Swedish pension funds AP1, AP2, AP3, AP4 and Canadian pension fund OMERS. Previous investors, such as Spotify CEO Daniel Eck and investment management firm Baillie Gifford, are also investing in the round.