Challenge Asia! Auto giant to invest heavily in European battery industry

According to a new analysis by CI Cenergi GUNE published today, major automakers are driving the European battery industry – the first batteries are already being produced in the region’s leading gigafactories.

Northvolt, backed by companies including Volkswagen, announced on Dec. 29 that it had assembled the first battery at its Gigafactory in Sweden.

The battery comes in a prismatic format and was developed by the company's industrial plant Northvolt Labs in Västerås, Sweden, which has been producing since early 2020.

In addition, Northvolt is working on other agreements with major automotive OEMs, including a joint battery manufacturing plant and R&D center with Volvo Cars in Gothenburg - the location of which was confirmed on February 4.

According to the CIC, Northvolt "is expected to soon join Tesla's large-scale Gigafactory project in Berlin" - citing reports in Germany that the company will start operations by the end of the first quarter of 2022.

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Meanwhile, the CIC noted that Stellantis had "accelerated its plans" after announcing in July 2021 that it would launch a third Gigafactory project in the southern Italian city of Termoli. The project will follow two such facilities under development in France and Germany.

Stellantis is working through the Automotive Cells Company (ACC), a joint venture with Saft battery owner Total Energies. Mercedes-Benz, owned by Daimler, is also a member of the ACC.

According to relevant media reports, Spain, as "the second largest car manufacturer in the EU, is one of the most innovative countries in recent months".

Volkswagen has announced its intention to build one of six planned gigafactories in Spain.

Separately, the "Basque Volt" solid-state battery development project - a CIC project in Vitoria-Gastez, the Basque capital of northern Spain - has been launched.

South Korean battery maker Eurocell announced on February 16 that it intends to enter the European market with the establishment of its first gigafactory in the region in the UK, the Netherlands or Spain to produce advanced batteries.

Eurocell said its technology in energy storage, automotive and electric vehicles is "superior to conventional lithium-ion batteries" and that the batteries it developed in South Korea have a lifespan 10 times longer than conventional lithium-ion batteries, eliminating all "end-of-life" issues .

As these and other projects move forward, the CIC said - with aid planned by the EU and countries starting to benefit the industry in 2022 - Europe will "a little bit" challenge the dominance of leading battery-making regions such as Asia.

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