Northvolt announced a 1 billion US Dollar equity increase by Volkswagen, BMW, Goldman Sachs, AMF, Folksam and IMAS. After approval by the Swedish competition authority, the additional capital will create the first European Giga factory for lithium-ion battery cells in Skellefteå (Sweden). Construction is scheduled to start in August 2019 and production is scheduled to start in 2021. »Northvolt Ett« will be the primary production site and will include active material preparation, cell assembly and recycling. The Giga factory will have a production capacity of 16 GWh and will be expanded to at least 32 GWh in the future.
In addition to the Swedish Giga factory, Volkswagen and Northvolt are planning to set up a joint venture to build a 16 GWh battery cell factory at the Salzgitter plant in Germany. Volkswagen is investing a total of 1 billion dollars in the joint battery activities – one part for the joint venture, the other part directly in Northvolt. The German production facility is to be operational by the beginning of 2024 at the latest and will have a production capacity of 24 GWh in the medium term.