Panasonic, Equinor and Norsk Hydro will explore the potential alliance of a European lithium-ion battery company, targeting automakers as potential customers, the companies said on Wednesday in a joint statement.
Norway, which relies heavily on oil and gas revenues, aims to become the world’s first country to cut sale of fossil-fuel powered cars by 2025. As of now, fully electric vehicles make up 60 percent of monthly sales in the nordic nation.
The alliance would be based off Panasonic’s leading technology and target European market for electric vehicles and other applications.
Panasonic, Equinor and Norsk Hydro have signed a memorandum of understanding to form a strategic partnership and will work alongside in the summer of 2021 to study the lithium-ion battery market in Europe. The goal is to establish a green battery company somewhere in Norway.
“We believe battery storage will play an increasingly important role in bringing energy systems to net zero emissions,” said Al Cook, executive vice president of global strategy and business development at Equinor. “By pooling our different areas of energy expertise, our companies will seek to create a battery business that is profitable, scalable and sustainable.”
In the preliminary phase, the companies will engage potential customers in the European automotive and non-automotive sectors, while engaging in a dialogue with the relevant authorities in Norway and Europe.
In the preliminary phase, the companies will approach European carmakers and other potential customers, while engaging in a dialogue with relevant authorities in Norway and the rest of Europe. This approach would help the alliance secure a competitive framework required to establish market dominance by mid-2021.
The alliance may supply cylindrical batteries to Tesla Inc.’s new electric-car plant in Germany, a Panasonic spokeswoman said. The electronics major plans to expand its existing joint battery venture with Tesla in Nevada by adding a new assembly line next year.
“Europe is sort of an untimely market. It’s nonetheless rising and there’s quite a bit to occur. It may very well be colossal,” Allan Swan, the top of Panasonic’s US battery manufacturing unit, instructed the Monetary Occasions. European carmakers are prone to lead the swap to electrical autos by aiming to be essentially the most “progressive” within the trade, he added.
The scale of the manufacturing unit in Norway would largely depend on the end result of the research. Although, it may very well be somewhere within the ballpark of the Nevada gigafactory, which is about to be upgraded to 38 gigawatt hours a year.