Northvolt will build 100 GWh / year cathode material factory in Sweden; reuse of closed pulp and paper mills
Northvolt and Stora Enso recently signed a letter of intent to purchase Kvarnsvedens Bruk with a nearby industrial area in Borlänge. Northvolt will develop the facility into a manufacturing facility for active materials and battery cells, reuse and renovate much of the existing facilities and the facility’s infrastructure.
The factory is expected to start the first part of its operations at the end of 2024 and will employ up to 1,000 people, who use 100% clean energy from the region. Fully developed, the plant will have a potential annual production capacity of more than 100 GWh of cathode material, which will enable cell assembly at several Northvolt plants. The site will also contain cell production.
Since the founding of Northvolt, we have focused on circular battery production, but this is the first time we will be reusing an entire production facility. With its access to energy, industrial water and the broad production know-how in the region, Kvarnsveden is an optimal place for a gig factory. We are proud to be able to open a new chapter in Borlänge’s history as a global industrial hub.
—Peter Carlsson, co-founder and CEO of Northvolt
The mill was founded in 1900 and produced pulp and paper for more than 120 years until its closure in 2021, which laid off more than 400 people. The agreement is the result of work by Stora Enso to find the best long-term solution for its former employees and the city of Borlänge. Key managers from Kvarnsvedenplatsen will remain for a transitional period in order to make the best use of the current infrastructure and enable a rapid transformation.
The project promotes Northvolt in its mission to deliver the world’s greenest lithium-ion battery and establish a sustainable supply of batteries to enable the decarbonization of society. The factory will play a key role in fulfilling more than $ 50 billion in orders from key customers – including BMW, Fluence, Scania, Volkswagen, Volvo Cars and Polestar – and joins a broader European production network of facilities being developed together with partners in Sweden , Norway, Poland, Germany and Portugal.