Swedish Nilar to set up battery factory in Estonia

Nilar's plant in Gavle, Sweden. Image: Nilar.

October 26 (Renewables Now) - Swedish battery maker Nilar International AB (STO:NILAR) is working with Estonian industrial and logistics real estate company Riigiressursside Keskus OU, or RRK Logistics Parks, to build a local plant for the production of batteries for stationary energy storage systems.

The 7,000-sq-m (75,347 sq f) facility, currently at the initial stage of construction, will be built in the Baltic Sea port town of Paldiski, in northwestern Estonia. Nilar will begin installing plant machinery in the first half of 2022, with the factory slated to go online in the second half of the same year.

"With good shipping connections to Sweden and very good access to green energy from a large local wind farm, it was easy for Nilar as one of Europe’s most energy efficient battery producers to choose Paldiski as the location for the establishment of our next production facility," Nilar chief executive Erik Oldmark said in a statement on Tuesday. "Another factor is that Estonia has direct rail connections to nickel production sites in Russia and in China, which may help to reduce logistics times," he added.

This will be the Swedish company's second battery and energy storage production plant after the one in Gavle, east-central Sweden, which has been in use since 2012 and is fully powered by renewable energy sources.

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