Century-Old Paper Mill Will Become Northvolt Gigafactory
EV battery specialist Northvolt will convert and reuse the Kvarnsveden Mill in Borlänge, Sweden, which opened in 1900, for EV battery production.
Once it becomes operational, the plant is expected to have annual production capacity of over 100 gigawatt hours.
Sweden-based Northvolt supplies EV batteries to VW Group, Volvo, and Polestar vehicles, in addition to operating a research and development lab with Volvo.
Swedish battery specialist Northvolt has made plans to purchase a paper mill founded in 1900, and convert the facility into a gigafactory slated to begin operations in 2024.
Northvolt plans to refurbish and reuse much of the Kvarnsveden Mill in Borlänge, Sweden, rather than building a new facility from scratch, thereby saving the existing industrial space instead of consuming materials to build an all-new plant.
The company plans to use 100% clean energy at the plant once it begins producing batteries for a number of automakers, including Volkswagen, Volvo, and Polestar.
The paper mill was active for over 120 years, only ceasing production in 2021, which resulted in the layoffs of over 400 employees. But the mill operator, Stora Enso, made it a priority to repurpose the site as a long-term solution for its former employees and for the nearby city.
"Sustainability is the main priority for Stora Enso and has to be addressed also in difficult times," said Per Lyrvall, Sweden country manager at Stora Enso. "Hence, a key focus since our decision to close the site has been to find a new owner that, to the benefit of the local society, can continue Stora Enso’s long and sustainable-driven legacy at Kvarnsveden."
Once battery operations begin in 2024, the gigafactory will boast an annual potential production capacity of over than 100 gigawatt hours when it comes to cathode material.
Volvo has indicated weeks ago that a gigafactory with a 50-GWh output could provide batteries for 500,000 electric cars annually, so it's possible we could see batteries for as many as a million or so vehicles from a plant with an annual potential production capacity of over 100 GWh.
Northvolt has been recently working with Volvo to create a battery research and development center near Volvo's home in Gothenburg, while also collaborating with Volkswagen on a second gigafactory in Skellefteå in northern Sweden. The German automaker owns 20% of Northvolt and plans to open a total of six gigafactories in Europe in the coming years.
"Since Northvolt’s founding, we have focused on circular battery production, but this is the first time we will reuse an entire production site," said Peter Carlsson, Co-Founder and CEO of Northvolt. "With its access to energy, industrial water and the broad production know-how in the region, Kvarnsveden is an optimal site for a gigafactory. We are thrilled to be able to open a new chapter in Borlänge’s history as a global industrial hub."
