Siemens and Swedish low carbon battery maker Northvolt have announced a partnership for the development of high-quality, green lithium-ion batteries.  

The partnership, in which Siemens will invest $11.7m, also includes the supply of lithium-ion batteries.Siemens in $11m ‘green’ battery pact with Northvolt

“We are building the battery factory of the future,” said Jan Mrosik, chief executive of Siemens Digital Factory Division.

“With our Digital Enterprise portfolio, we contribute to a competitive battery cell production in Europe that fully exploits the benefits of software and automation: greater flexibility, efficiency and quality with shorter time to market.”

Mrosik said that to mitigate the effects of climate change, Europe is accelerating its transition to renewable energies. “Electrification and an increased use of batteries is one of the cornerstones of this transition, enabling the large-scale conversion to sustainable transportation as well as a deep integration of renewable sources in the energy mix. With limited current and planned capacity in place, Europe is now facing a major battery deficit of within the next few years.”

Ulf Troedsson, President of Siemens Nordics, said 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.”

Once completed in 2020, Siemens intends to purchase batteries from the factory, making Northvolt a preferred supplier. Siemens sees the Northvolt initiative as a reference project for the battery production of the future, which will rely on the integration and digitization of the entire value chain: from the design of the battery cell through production planning, engineering and production to services.

Peter Carlsson, co-founder and chief executive of Northvolt, said: “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.”

Battery storage is one of thye hot topics at Electrify Europe next month in Vienna. Find out more and register here.