Capacity of EU battery makers is expected to be 600 GWh

Since Tesla popularised the term in 2014 with its first macro battery manufacturing project, the term gigafactory has gained traction on the industrial and economic agendas of major industrialised countries worldwide.

Published

September 2022

Industry

Electric Vehicles

Author

evmarketsreportscom.acc.teamexpedition.nl

The anticipated rise of e-Mobility in the next years is compelling countries to take positions across the whole value chain of this industrial sector, including companies that manufacture battery cells.

The EU and its member states view the e-Mobility sector as a crucial trigger for kick-starting the post-covid recovery and meeting the EU’s energy transition and environmental goals. In 2017, European Commissioner Maroš Šefčovič, also known as the “battery commissioner,” committed to batteries as a crucial component of the continent’s future competitiveness. Europe would never create the cheapest batteries but, it can provide the best, most efficient, and most sustainable batteries.

Northvolt, a venture founded by two former Tesla executives and backed by the Swedish Energy Agency and the European Investment Bank, was launched in 2017 with the goal of becoming a flagship of high-quality green batteries. Northvolt has already committed contracts worth €27 billion and raised more than €17.3 billion in investment from investors such as Volkswagen and Goldman Sachs in order to begin production of 150GWh in 2030.

Along with Northvolt, one of the most popular European initiatives in recent years has been Tesla’s proposed project in Germany. The company, founded by media phenomenon Elon Musk, plans to establish its first European gigafactory in the summer of 2021, with the goal of eventually reaching a capacity of up to 40 GWh. The potential of the American company in Europe is demonstrated by the fact that it has already announced plans to begin developing a second project on the continent.

However, Northvolt and Tesla are only the beginning. More than 20 battery cell plant projects have already been launched in Europe for the future years. With all of them, an annual production capacity of 600 GWh is predicted, which is only half of the European market’s expected base need for 2040.

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