Former Tesla Exec to Build a $4 Billion Gigafactory in Europe
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Former Tesla VP of Supply Chain Peter Carlsson has announced plans to build a 4 billion Euro Gigafactory in Sweden. His company, NorthVolt, is planning to develop a battery plant which will have a production output of 32GWh annually. By comparison, Tesla’s Gigafactory is expected to have a production output of 35 GWh annually. Tesla CEO Elon Musk says this figure can transition one hundredth of the world’s energy supply onto renewables.

According to insider sources, Carlsson is fundraising at the moment. The “partnership round,” will have NorthVolt reaching out to automakers, energy storage companies and other customers for revenue. The Gigafactory will help suppliers meet a boost in the consumer battery demand, as prices drop below $100 per kilowatt-hour. In addition, as electric cars become commonplace replacing gasoline-chugging vehicles, it will help push consumers to make the transition.

NorthVolt

NorthVolt Gigafactory will be developed in one of the two locations in Sweden. Both the locations are in the east. The ambitious project is expected to cost $4.7 billion. CEO Peter Carlsson is keeping no stone unturned to ensure the company follows the timetable.

This fall, the company will begin the application process required for a permit, so that environmental issues can be addressed. In the second half of 2018, NorthVolt will begin development, with production plans in 2020. The company is backed by prominent European investors in the energy, environmental, and transportation industry. This includes InnoEnergy, Stena, Vattenfall, Vinnova and the Swedish Energy Agency.

Following this round, NorthVolt is expected to net between 1.2 billion euros to 1.4 billion euros.

A few more companies are planning to take on Tesla. This includes CATL, which is building a giant factory in the Chinese city of Ningde. It will have a production output of 50 gigawatt-hours. If successful, it will become the largest Gigafactory in the world.

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