Dutch-based knowledge and innovation community (KIC), InnoEnergy has invested €3.5m to help Swedish start-up Northvolt build a battery factory in Europe.

The factory to be built in the Nordic region is expected to be the first of its kind in the continent, manufacturing high-quality lithium-ion battery cells on a large scale.

It is eventually expected to have a production capacity of 32Gwh by 2024 to match with rival company Tesla’s gigafactory in the US.

Northvolt CEO and co-founder Peter Carlsson said: “InnoEnergy is the gateway to the largest and most valuable innovation ecosystem in Europe.

“The investment will support us in realizing our vision of creating Europe’s largest scale battery cell production facility. But – more than that – InnoEnergy’s vast network has the power to support us for years to come.”

Battery cells produced from the factory will be used for electric cars, energy storage and other products and applications powered by electricity.

The battery factory will produce competitive battery cells for electric cars, energy storage and other electrical powered products and applications. Once established, the factory is likely to provide employment for thousands in Europe.

InnoEnergy CEO Diego Pavia said: “The development of a European large scale battery factory will be revolutionary, especially in terms of electrification of transport – which in itself could drastically reduce Europe’s carbon footprint.

“The benefits can also go beyond supporting the transition to electrification. By considering the deployment of battery-based energy storage at all levels of the electricity network, we can also see that this battery factory will add value to the grid while maximizing the integration of renewable energy.”

Investment from the Dutch KIC will help the Swedish company to finalize technology partnerships, factory and process design and supply chain. It is also likely to cover its expenses on site selection, and environmental and recycling plans.

Further, InnoEnergy will support Northvolt by giving it access to its pan-European network in attracting additional investment and for its business development.

Image: Illustration of Northvolt’s large-scale battery factory in the Nordic region. Photo: courtesy of KIC InnoEnergy SE.