Sweden’s Northvolt lands BMW deal in boost before fund raising

  • bizline

Oct 17, 2018-

Sweden’s Northvolt has secured a partnership with German carmaker BMW and is seeking more funds from the European Investment Bank (EIB) to help its plans to build Europe’s largest battery factory. The firm’s new plant is seen as central to Europe’s effort to compete with Asian rivals such as CATL, Samsung and LG Chem, which have gained a lead in the battery market by locking in supply deals with carmakers. Northvolt said on Monday it had teamed up with BMW and Belgian materials and recycling firm Umicore to design and commercialise a process that would give vehicle batteries a second lease of life as storage products before recycling them. BMW will provide expertise in battery cell development and Umicore will be responsible for developing active anode and cathode materials and recycling, the companies said. The German carmaker, which has supply deals with Samsung and CATL, is investing an undisclosed sum in the partnership. BMW spokesman Niklas Drechsler said the deal opened the door to the possibility of buying batteries from Northvolt in future. “We have this consortium because we see great potential and Northvolt could be another supplier of battery cells for us,” he said, adding that Northvolt had to “build up and ramp up” cell production before any supply deal could be reached. Northvolt, set up by former Tesla executive Peter Carlsson, needs to raise close to 4 billion euros ($4.6 billion) in equity and debt to finance its plans of building a factory to produce 32 gigawatt hours (GWh) of battery capacity a year by 2023. 

Published: 17-10-2018 09:08

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