# Exclusive-Northvolt plots EV battery grab with $750 million Swedish lab plan
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-10-07
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Northvolt to Invest $750 Million in Lab Facility Expansion in Sweden
Meta Description: Northvolt plans to invest $750 million expanding its lab in Sweden to meet soaring demand for lithium-ion batteries, targeting a 25% market share in Europe by
URL: https://financedigest.com/exclusive-northvolt-plots-ev-battery-grab-with-750-million-swedish-lab-planhtml

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By Helena Soderpalm and Supantha Mukherjee

STOCKHOLM (Reuters) – Northvolt plans to invest $750 million expanding its laboratory facility in Sweden, a top executive said, to meet soaring demand for lithium-ion batteries as carmakers go electric.

As it aims to take on major Asian players such as CATL and LG Chem, Northvolt said it would set up the “first R&D campus covering the entire battery ecosystem”.

Northvolt, which [plans to start production this year](https://www.financedigest.com/3-factors-to-plan-for-in-2017-a-year-like-none-other.html "3 Factors to Plan for in 2017, A Year Like None Other") at its gigafactory in Sweden’s Skelleftea, plans to build a new office in Vasteras, increase headcount there to at least 1,000 from 400, and create a centre for customers to experiment with battery technologies and electrification.

China is currently home to some 80% of lithium-ion cell production, but with demand soaring, capacity in Europe is [set to expand quickly and Northvolt is targeting](https://www.financedigest.com/eu-sets-recycling-reuse-targets-to-cut-packaging-waste.html "EU sets recycling, reuse targets to cut packaging waste") a 25% market share in Europe by 2030.

The development in Vasteras is the funnel right now that will enable us to do that land grab,” Northvolt Chief Executive Peter Carlsson told Reuters, adding that this would [require it to hire around 5,000 engineers within five years](https://www.financedigest.com/first-year-of-n-ireland-protocol-required-1-million-customs-declarations.html "First year of N.Ireland protocol required 1 million customs declarations").

“I have some slide presentation on the very early concepts … we hadn’t chosen Vasteras then but we had a first [budget of 80 million](https://www.financedigest.com/uk-budget-fashion-chain-primark-to-invest-140-million-stg-in-stores.html "UK budget fashion chain Primark to invest 140 million stg in stores") dollars,” Carlsson said in an interview.

European carmakers are looking to use [batteries from Northvolt](https://www.financedigest.com/northvolt-and-scania-unveil-battery-for-heavy-trucks.html "Northvolt and Scania unveil battery for heavy trucks") for their electric vehicles to rival those from Tesla, which is building its own factory in Germany.

Backed by Volkswagen, Scania, the European Commission and Spotify founder Daniel Ek, Northvolt has raised [funding of more than $6.5 billion](https://www.financedigest.com/global-citizen-seeks-up-to-1-billion-for-six-sustainable-impact-funds.html "Global Citizen seeks up to billion for six sustainable ‘Impact’ funds"), with nearly $20 billion in orders from the biggest automakers.

A [source said in June that its latest fundraising had valued Northvolt at $11.75 billion](https://www.financedigest.com/cvs-walmart-walgreens-agree-to-pay-13-8-billion-to-settle-u-s-opioid-claims-sources.html "CVS, Walmart, Walgreens agree to pay .8 billion to settle U.S. opioid claims – sources"). Electric [vehicle and related sectors have been a big draw for investors](https://www.financedigest.com/investors-go-back-to-basics-with-simpler-self-driving-vehicles.html "Investors go back to basics with simpler self-driving vehicles"), who have driven up the valuations of pioneers such as Tesla and Lucid Motors.

(Reporting by Helena Soderpalm; Editing by Alexander Smith)


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