Siemens backs Northvolt’s battery gigafactory

Siemens backs Northvolt’s battery gigafactory

Business news |
By Nick Flaherty

Siemens will offer startup Northvolt its Digital Enterprise portfolio that enables the digitization of the supply chain from the design of the battery cell to production and services, and Northvolt will become a preferred supplier for lithium-ion batteries for Siemens. The two companies are also exploring potential areas for joint development programs.

Earlier this year, Northvolt signed a €10m deal to develop lithium ion batteries for Scania trucks. Siemens and Scania are working closely on a number of electric truck projects.

It’s gigafactory, powered by hydroelectric sources, will produce 32 GWh of batteries a year when it pens in 2020 and be a reference project for the battery production of the future, says Siemens. “We are happy to support Northvolt in building the battery factory of the future. With our Digital Enterprise portfolio, we contribute to a competitive battery cell production in Europe that fully exploits the benefits of software and automation through greater flexibility, efficiency and quality with shorter time to market,” said Jan Mrosik, CEO of Siemens Digital Factory Division, which also includes EDA vendor Mentor Graphics.

“Northvolt is driving the battery production to build a battery with very low CO2 footprint. Our Digital Enterprise portfolio will support Northvolt in building a state-of-the-art battery plant. We are excited to go in as a partner in this project,” said Ulf Troedsson, President and CEO of Siemens Nordics.

Once the batteries are in production, Siemens intends to purchase batteries from the factory, making Northvolt a preferred supplier. Siemens’ Digital Enterprise portfolio covers manufacturing planning and design software to automation, including industrial communications networks and cloud solutions as well as design software from Mentor Graphics, to help Northvolt optimize its battery production. 

“The European industry is moving rapidly towards electrification. With its world-class expertise within electrification, automation and digitalization, Siemens will become an important technology partner, supplier and customer to Northvolt in this coming transition. Once we begin large-scale production, our aim is to supply the greenest lithium-ion batteries in the world”, said Peter Carlsson, co-founder and CEO of Northvolt.

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