Shenzhen Senior Technology Material will erect a production line, its first outside China, at the Svista industrial estate, with supplies going by rail via the Eskilstuna Intermodal Terminal.
Senior's establishment in Sweden and Eskilstuna will involve three phases. To begin with, the company will rent a 13,900 m2 facility at Svista from the real estate company Nyfosa.
A letter of intent has been signed between Eskilstuna Municipality, Nyfosa, and Senior to develop a 120,000 m2 plot of land adjoining the existing facility, with a view to expand operations in the second and third phases.
Currently, the plan is to establish a 70,000 m2 facility by 2025. The investment is expected to create some 500-600 direct jobs.
Once operational, the Senior Eskilstuna factory will provide the Northvolt Ett lithium-ion battery production site in Skellefteå with separators (large-scale manufacturing at Northvolt's facility is to commence this year - annual capacity will ramp up to at least 32 GWh by 2024, with the potential to expand to 40 GWh in the future; in spring 2020 another Chinese firm, Kedali Industry, decided to settle in Skellefteå to supply Northvolt with square battery cases).
Senior says that the company chose Sweden because of the high share of carbon-free energy available in the country, while Eskilstuna - for its logistics capabilities, especially as regards rail transportation.
"Europe will be the world's most important market for the electrification of transport and energy storage solutions in the future. In addition, the EU has set a target of completely replacing conventional cars with electric vehicles over the next 15 years. The market opportunities are vast and there is great potential for further development. Senior's establishment of a production facility in Sweden is a key step in our global strategy," Xufeng Chen, Chairman of the Board, Senior, underlined.
Ibrahim Baylan, Sweden's Minister for Business, Industry and Innovation, added, "Electrification and access to energy storage play a decisive role in the transformation of industry and society to combat climate change, and in making Sweden one of the world's first fossil-free welfare nations. This is an important investment, not least for Eskilstuna, to ensure that batteries can be manufactured sustainably in Sweden."
Johan Holmqvist, Chairman, Eskilstuna Logistik och Etablering, also said, "It is very gratifying that a listed company, in a rapidly expanding high-tech industry, has decided to locate its European headquarters and production site in Eskilstuna. I am convinced that Senior's establishment will have a positive impact on the entire business community in Eskilstuna."
Photo: European Battery Alliance