Sunday, January 23, 2022

Northvolt & Galp planning to build Lithium plant in Portugal

The Swedish battery cell manufacturer Northvolt is setting up a 50:50 joint venture with Portugal’s energy company Galp. Under the direction of the joint venture Aurora, a lithium conversion plant will be built in Portugal.

The plant will have an annual production capacity of up to 35,000 tons of battery-grade lithium hydroxide and will begin commercial operation in 2026.

Northvolt points out that the Portuguese plant will be “the largest and most sustainable integrated lithium conversion plant in Europe” and “a milestone in the development of a European battery value chain”.

According to the parent companies, the newly launched joint venture is currently conducting technical and economic studies and examining several possible locations. A final investment decision is still pending, they say. Northvolt estimates that the investment volume would amount to about 700 million euros, and that it will seek subsidies to support the project. In return, up to 1,500 direct and indirect jobs would be created.

The plant will be able to produce 35,000 tons of lithium hydroxide per year. According to Northvolt, this quantity allows for battery production in the order of 50 GWh or the construction of 700,000 electric vehicles per year. As part of the agreement with Galp, Northvolt is committing to purchase up to 50 per cent of the plant’s capacity for use in its own battery production.

“The development of a European battery manufacturing industry provides tremendous economic and societal opportunity for the region. Extending the new European value chain upstream to include raw materials is of critical importance….This joint venture represents a major investment into this area, and will position Europe with not only a path to domestic supply of key materials required in the manufacturing of batteries, but the opportunity to set a new standard for sustainability in raw materials sourcing. This initiative comes to complement a global sourcing strategy based on high sustainability standards, diversified sources and reduced exposure to geopolitical risks.”

Paolo Cerruti, co-founder and COO of Northvolt

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Hi I'm Leanne. I'm a big fan of electric cars (drive a Model 3 myself) and support the movement to go electric! I hope you enjoy my Articles here on the website.
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