Northvolt and Stora Enso have announced the signing of a letter of intent on a purchase of the Kvarnsveden Mill and the surrounding industrial area in Borlänge, Sweden. Northvolt will develop the site into a manufacturing plant for active material and battery cells, reusing and refurbishing much of the existing facilities and site infrastructure.

The gigafactory is expected to start the first part of its operations in late 2024 and will employ up to 1,000 people, utilising 100 per cent clean energy from the region. Fully built out, the site will have a potential annual production capacity of more than 100 GWh of cathode material, which will enable cell assembly at multiple Northvolt facilities. The site will also feature cell production.

Founded in 1900, the mill produced pulp and paper for over 120 years until its closure in 2021, laying off over 400 people. This agreement is the result of a strong commitment by Stora Enso to find the best long-term solution for its former employees and the city of Borlänge. With its access to energy, industrial water and the broad production know-how in the region, Kvarnsveden is an optimal site for Northvolt to establish a Gigafactory.

A new chapter in Borlänge's history as global industrial hub‍

“This project opens a new chapter in Borlänge’s history as a global industrial hub. It also advances Northvolt on its mission to deliver the world’s greenest lithium-ion battery and establish a sustainable supply of batteries to enable the decarbonisation of society. The factory will play a key role in fulfilling more than $50 billion in orders from key customers,” says Carl-Erik Lagercrantz, Chairman of Northvolt.