Northvolt is a company that supplies the automotive industry with batteries. This is a business that investors may want to keep an eye on as it is set to launch a major distribution campaign in the year 2020. This is an interesting new company that has the potential to skyrocket to success in the near future. Its entry into the lithium-ion battery market is coming at a time when automakers are placing high demands on the products. To help you become more familiar with it, here are 20 things you didn't know about Northvolt.
1. It's Sweden's best-kept secret
If you haven't yet heard of Northvolt, you shouldn't feel bad or out of the loop. It is a fairly new company that hasn't been around for long. The company was founded in 2016, which means that it hasn't even been in business for a full four years yet. The founders are Peter Carlsson, Paolo Cerruti, Harald Mix, and Carl-Erik Lagercrantz.
2. It is s European business
Northvolt is a European company that was founded in the country of Sweden. The headquarters are located in Stockholm, Sweden. Key people in the operation that will produce lithium-ion batteries are founder Carl-Erik Lagercrantz, who serves as Chairman of the Board, and Peter Carlsson, who serves as the Chief Executive Officer of Northvolt, leading the team that is preparing for a bright new future.
3. Northvolt is on a special mission
Northvolt is a company that manufactures and produces lithium-ion batteries, which are high in demand in the automotive industry. These are products that are intended to help reduce the amount of pollution in the air, ground, and water, by enabling a cleaner source of renewable energy to power the vehicles that occupy roads throughout the planet. The carbon emissions from mass transit systems of the past have contributed to the destruction of the delicate ecosystem of the earth. Northvolt has the mission of creating the greenest battery in the world to aid in the effort of transitioning Europe to a source of renewable energy.
4. Northvolt has a solid strategic plan
Northvolt has set forth a plan for expanding its operations to include multiple factories fand research facilities. We were impressed with their plans to build a gigafactory that is to be built in Skelleftea, Sweden. It will be called Northvolt Ett and will serve as the large facility that will manufacture Northvolt's lithium-ion batteries for the automotive industry. There are also plans to construct a research facility and demonstration factory in Vasteras, Sweden that will be called Northvolt Labs.
5. Northvolt has a partnership in Japan
The Cell Design team of Northvolt has already completed the delivery of the first test cell. This was accomplished through a partnership that created a collaboration with external, or third-parties in Japan. The collaboration already involved more than one hundred employees and was agreed upon in March of 2018. The company represents more than 30 nationalities.
6. The Northvolt employee workforce has grown
Northvolt has stepped up its operations in preparation for the distribution of its first released product lines in 2020. We learned that between March of 2018, when the collaborative workforce was just 100, the number of employees has increased five-fold in a period of fewer than 18 months. by October of 2019, the construction of Northvolt Ett had begun and the workforce had grown to a size of 500 workers. This is how the business is preparing to kick into full gear for production in 2020.
7. Northvolt is operational in multiple locations
While looking through Northvolt's website to learn more about its current operations, we learned that it has already established multiple facilities for various aspects of operation throughout the world. In addition to the Japanese collaboration, the facilities in Vasteras, Stockholm, and Skelleftea locations, it has set up shop at other locations for active material preparation, recycling, cell assembly, and auxiliaries at Northvolt Battery Systems in Gdansk, Poland, and at Northvolt Zwei in Braunschweig/Salzgitter, Germany. Northvolt is actively expanding throughout Europe as well as establishing partnerships with external partners in Japan.
8. Northvolt has partnered with Volkswagen
Northvolt has been given an economic boost thanks to a few heavy investments that have been made by the German automaker Volkswagen. The company made the decision to make heavy investments in two of Northvolt's new battery plants that are located in the country of Sweden. Although the amount of the investment was not disclosed, it makes VW one of the primary investors in Northvolt.
9. Northvolt will be the largest lithium-ion battery manufacturer in Europe
The Swedish car battery producer is making history. The Northvolt factory that is situated in the northeastern part of Skelleftea is confirmed to be the largest plant of its kind in all of Europe once production commences. This puts int in the ideal position to become a stiff competitor for the market against Tesla. Other Northvolt factories will combine their forces with the gigafactory and the company is predicted to give Tesla's Nevada gigafactory a run for its money in the months and years to come.
10. Northvolt has strong investment backing
We also discovered that Northvolt has drawn a strong group of investors into its partnerships. Volkswagen is rumored to be one of the largest, although the precise investment amount has not been disclosed. The Skelleftea factory is also backed with investments from AMF, a Swedish pension fund, BMW, the German automaker, as well as the Goldman Sachs bank. The European Investment Bank has guaranteed a loan of an additional 350 million Euros for Northvolt's Skelleftea factory for the project that is set to kick into full swing in May.
11. Northvolt will make a difference in Europe
Northvolt's advancement into the lithium-ion battery production market is a big event for Europe. This signals an advance for the continent to move into a competitive position in the European market for automobile battery sales and it is set to primarily serve the European market. It is a milestone for Europe as well as for Northvolt as it will pave the way for competition in the electrification efforts that are geared towards providing a cleaner and greener resource for powering vehicles.
12. Volkswagen will have a stake in Northvolt
Although nobody really knows how much money that Volkswagen has invested in Northvolt, there has been more information posted about particulars of the deal that have been agreed to. First, the significance of the deal requires that Northvolt received the Swedish Competition Authority's approval. After this is secured, Volkswagen will make an acquisition of a stake of twenty percent in Northvolt. In addition, VW will receive one seat on the board of directors for the company.
13. Europe will benefit economically from Northvolt
Northvolt is a startup that is bringing along with it two major benefits for the European countries in which it operates. The company will result in a European green battery chain that decarbonizes power generation which is good for the environment. While this is a major benefit, there will be more. According to the projections made by EUstartups.com, the battery factory and development business will aid in protecting millions of employment opportunities that are well-paid in European industries. It's good news for Europe's economy and the job market.
14. 2020 will be a big year for Northvolt
Northvolt leadership has been busy preparing for the day when Northvolt will begin production and distribution of its products. It has been a long process to secure the necessary funding and permissions from the local government to move ahead with its plans. This has been a stringent process that is highly regulated. We learned that the most recent loan of more than three hundred million in loan funding will finalize the fundraising effort to begin work in the first quarter of the factory. This project is expected to be completed during the current year. Northvolt Ett, its gigafactory will be the primary site for the production of its lithium-ion batteries that are intended for automotive and other commercial uses.
15. Northvolt's outlook is sunny
Construction of the Skelleftea plant is scheduled to begin in August of 2020 and the good news is that there are plans to provide the first wave of 16 GWh or cell manufacturing at the plant. Northvolt has already secured orders that extend into the year 2030. The orders placed so far will bring is a total value of over $13 billion. Northvolt has already locked in deals with multiple automakers that will help the business to move quickly towards profitability after production begins and what this means for investors is that the future of Northvolt is sunny.
16. Production projections are already in
Even though Northvolt has not yet begun production of batteries, it is on track to meet the scheduled large-scale manufacturing processes which will commence in 2021 at the Skelleftea plant. The company is already releasing information about projections for the volume of products that are slated to be produced between 2021 and 2024. There are plans to produce and distribute enough lithium-ion batteries to power over half a million completely electric sedans. This is good news for the European electric auto industry.
17. Northvolt has a plan for reducing its carbon footprint
Even the production processes for green energy leave a carbon footprint on the earth. It is difficult to get away from this fact of life and business, but Northvolt is taking steps to help reduce the impacts that the manufacturing process has on the environment. The refining processes involved with the preparation of raw materials release emissions of some toxic substances into the air. Northvolt has addressed concerns by setting up their own processes and whereas many of its competitors buy components that are already made with less than eco-friendly processes, the company will purchase the raw materials directly from mining companies and produce its own components.
18. The recycling plans are solid
As a part of Northvolt's strategies to reduce the carbon footprint, it has also established a recycling program that will be in operation throughout Europe. Old batteries that are spent will be recycled and the materials that are salvageable will be reused to create more green energy for the world's electric automobile industry. The recycling operation is yet one more aspect of Northvolt that will help to decrease the number of toxic materials in the world, through a system that properly disposes of materials that cannot be used and repurposes those that can.
19. Northvolt has raised more than a billion
Northvolt's funding campaign has reached the billion-dollar mark when figured in USD. This puts the company in the lead for raising the most funds in Europe for a new startup venture. The equivalent in Euros is about 900 million. It shows that European lenders are willing to get behind the effort to electrify Europe and they're willing to take a gamble on the new company that has not yet even started production. On one hand, since Northvolt has not yet started the manufacture of products and distribution, it's not profitable. The contracts that are lined up in advance, however, suggest that it will not be long before it is. With projections of more than $13 billion in sales through contracts already secured, it shouldn't be long before it is a profitable revenue-generating venture.
20. Northvolt is projected to assume the lead in the industry
Projections are already being made for Northvolt to assume the lead over the current world leader in battery production. As it stands, China is the number one country in automotive lithium-ion battery production, but Northvolt is taking a different approach that may be more appealing. The startup plans to use a vertical integration system for dpreparing its own materials, assembling the cells and battery modules and recycling spent cells in a manner that will result in the production of batteries that offer CO2 emissions that are between 60 to 70 percent lower than those made in China.
Written by Allen Lee
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