Sweden-based startup Northvolt is planning to build a massive battery factory to meet an estimated increase in demand for batteries in Europe.
The startup, which is managed by two former Tesla employees, is seeking an investment of about $4bn to develop the facility.
The new facility will supply batteries to the European automakers involved in the manufacturing of electric vehicles.
Northvolt’s battery factory will help the region’s electric car makers to reduce the dependence on Asian battery manufacturers.
With an annual cell production equivalent to 32GW hours by 2023, the new battery plant is expected to employ between 2,500 and 3,000 skilled workers.
Northvolt CEO Peter Carlsson and CEO Paolo Cerruti have launched the new startup to produce lithium-ion batteries.
Carlsson was quoted by Reuters as saying: "I am very optimistic that we can attract both industrial investors as well as institutional investors.
"We hope to close the major investment in just over a year, but we have already begun talking to companies and institutions that could be leading players in the process."
The startup plans to use the low cost renewable energy, as well as battery ingredients such as nickel, cobalt and lithium collected from the Nordic region.
Northvolt will also focus on energy storage and heavy industrial machinery segments, in addition to the automotive sector.
Northvolt chief operating officer Paolo Cerruti said: "We are not going to fill the plant only with automotive. Not because we don't think it is possible, but we don't think it is a good idea to depend heavily on one vertical, and only one."