Northvolt said on Monday it had won an order over $14 billion for 10 years from Germany’s Volkswagen, which boosts its stake in the Swedish lithium-ion battery manufacturer.
Northvolt said it will sell its share in joint-venture Northvolt Zwei in Salzgitter to the automaker which becomes the German gigafactory’s single owner.
Northvolt describes itself to have founded in 2016 “with the mission to build the world’s greenest battery cell, with a minimal carbon footprint and the highest ambitions for recycling, to enable the European transition to renewable energy”.
Volkswagen, which established a partnership with Northvolt in 2019, has said earlier that it owns around 20% of the Swedish company.
Northvolt aims to take a major role in Europe to compete with major Asian players such as CATL and LG Chem, and targets a 25% European market share by 2030.
It said it had secured more than $27 billion worth of contracts from major consumers.
“By consolidating cell production to the Northvolt Ett gigafactory, the partners will achieve further economies of scale, thereby securing the best possible cost and enabling the lowest environmental footprint in the world for cell production,” it said.
Volkswagen prepares to have six battery cell production plants operating in Europe by 2030 to secure supply for its electric vehicle ambitions.