Swedish company Northvolt and Taiwan-based ProLogium have announced plans to set up electric vehicle (EV) battery manufacturing facilities in Europe.
In a joint statement, Northvolt and the German government said the Sweden-based company will set up a gigafactory in Heide, Germany.
The 60 GWh factory will create 3000 direct jobs in Heide and thousands of additional jobs in the surrounding industry and service sectors.
Once operational, it is expected to provide batteries for approximately one million EVs.
Subject to the approval by the European Commission, the federal government and the Schleswig-Holstein State government will provide subsidies for the project.
Commenting on the development, German Economy Minister and Vice Chancellor Robert Habeck said: With the next steps regarding Northvolt, Germany can look forward to one of the most significant lighthouse projects of the energy and transport transition, which will create thousands of green tech jobs.”
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Northvolt founder and CEO Peter Carlsson said: “Backed by this commitment of the federal government, Northvolt has decided to take the next steps towards our expansion in Heide.”
The Taiwan-based company plans to invest €5.2bn ($5.66bn) for a 48 GWh gigafactory and an R&D centre.
ProLogium’s investment is anticipated to create 3,000 direct jobs and 12,000 indirect jobs in the region.
According to Reuters, the companies will invest around $11bn combined in their respective facilities, which will start production by 2026.
French President Emmanuel Macron said: “We were competing with the entire world and you chose France and Dunkirk. You trust in a country and an industrial site over the long term, and so we will be committed to meeting the deadlines, the financing and everything that will enable you to succeed over the long term.”
ProLogium executive vice president of international development Gilles Normand added: “We are pleased to put our roots down in Dunkirk, France after a comprehensive evaluation. Moving forward, it is time to work with all stakeholders and the people of Dunkirk to make our vision of carbon neutrality a reality.”