Saturday, February 20, 2021

Poland is one of the European centers of battery production, Northvolt comes there too

Poland has become a leader in the export of lithium-ion batteries in the European Union and a large center for electric battery production. Despite the pandemic, in mid-2020, Polish battery exports amounted to approximately EUR 2.9 billion. LG Energy Solutions, Johnson Matthey, and Northvolt made sizable investments there in the production of batteries.

The largest lithium-ion battery factory in the world, owned by LG Energy Solutions, part of the South Korean LG Group, is located in Kobierzyce in Poland. Today the Swedish company Northvolt announced that it will invest $200 million into a production plant and a research and development center for battery modules in the Pomeranian Special Economic Zone.

The value of the European cell and battery production market in 2025 will amount to approximately EUR 250 billion, according to the Polish Press agency (PAP). The European Commission plans to help battery producers and create conditions for the emergence of a European center to produce cells and batteries. Including this segment in the IPCEI (Important Projects of Common European Interest) mechanism would allow for the suspension of state aid restrictions in the European Battery Alliance case. The European Union's general plan is to limit the supply of batteries and, consequently, Europe's dependence on several strong manufacturers of these devices from Asia in the era of transformation of the economy towards electromobility and renewable energy sources.

LG Energy Solutions continues to invest there in developing the production capacity of the lithium-ion battery factory for electric cars. The total amount of LG's investment will exceed EUR 3.1 billion, and employment in the plants is to reach 10,000 jobs. LG devices, due to their high quality, are eagerly ordered by European automotive concerns.