February 13 (Renewables Now) - The European Investment Bank (EIB) on Monday approved to extend a loan of up to EUR 52.5 million (USD 64.5m) for the construction of a pilot factory for lithium-ion batteries in Sweden.
The loan will be extended to battery maker Northvolt AB, which plans to start building the “first-of-a-kind” demonstration plant in Vaesteras city, central Sweden. Batteries produced at the facility will be used in transport, stationary storage, industrial and consumer applications, the EIB said in a press statement.
Northvolt’s project also involves the construction of a research facility that, together with the manufacturing base, will have a personnel of between 300 and 400 people. The implementation of the project is part of the Swedish company’s plan for the establishment of a large-scale li-ion battery production facility in Skelleftea, northern Sweden, where Northvolt aims to make 32 GWh worth of batteries per year.
The EIB loan is expected to be backed by InnovFin – EU Finance for Innovators’ Energy Demonstration Projects facility, with the support of the European Union.
“Europe is currently lagging behind when it comes to battery manufacturing and this highly innovative and strategic project deserves European backing to fill that gap,” commented EIB’s vice president Ambroise Fayolle.
(EUR 1.0 = USD 1.229)