As part of the effort, Siemens will invest EUR10m ($11.7m) in a partnership with Northvolt, which is planning to build battery factory in Sweden with an investment of €4bn.

The partnership includes the use of Siemens’ Digital Enterprise portfolio to digitize the value chain, from the design of the battery cell to production and services, Siemens said.

Siemens Nordics president and CEO Ulf Troedsson said: “Northvolt is driving the battery production to build a battery with very low CO2 footprint. Our Digital Enterprise portfolio will support Northvolt in building a state-of-the-art battery plant.”

Additionally, Siemens intends to make Northvolt a preferred supplier by purchasing batteries from the proposed factory, which is scheduled to be completed in 2020.

Siemens Digital Factory Division CEO Jan Mrosik said: “With our Digital Enterprise portfolio, we contribute to a competitive battery cell production in Europe that fully exploits the benefits of software and automation: greater flexibility, efficiency and quality with shorter time to market.”

Northvolt co-founder and CEO Peter Carlsson said: “The European industry is moving rapidly towards electrification. With its world-class expertise within electrification, automation and digitalization, Siemens will become an important technology partner, supplier and customer to Northvolt in this coming transition.

“Once we begin large-scale production, our aim is to supply the greenest lithium-ion batteries in the world.”

In 2017, ABB signed a memorandum of understanding (MOU) with Northvolt for a wide-ranging supply and technology partnership, including products and services for Northvolt’s lithium-ion battery factory.

The two companies have agreed on technology collaboration to push forward innovation in battery technology and in areas including production platform, cell and module design and battery performance.

Earlier this year, the European Investment Bank (EIB) has approved a €52.5m loan to Northvolt to establish a battery manufacturing facility.