Siemens and Northvolt jointly develop lithium-ion batteries

Global industrial giant Siemens AG and Swedish battery technology developer Northvolt AB have announced a partnership to develop the best technology to produce high-quality green lithium-ion batteries. Siemens will support the partnership with a €10 million investment, which will also include the supply of lithium-ion batteries.

Siemens will provide Northvolt with its Digital Enterprise portfolio to enable digitalization of the entire value chain – from battery pack design to production and services – and receive a €10 million equity stake (image courtesy of Northvolt).

To mitigate the effects of climate change, Europe is accelerating its transition to renewable energy. Electrification and the increased use of batteries are one of the cornerstones of this transition, enabling a large-scale shift to sustainable transport and a deep integration of renewable energy into the energy mix. Due to the limited capacity of current plans, Europe will face a serious battery shortage in the coming years.

We are pleased to support Northvolt in building the battery factory of the future. With our Digital Enterprise portfolio, we are committed to enabling competitive battery production in Europe, leveraging the advantages of software and automation: greater flexibility, efficiency and quality, and shorter time to market,” said Jan Mrosik, CEO of Siemens Digital Factory.

The technical partnership revolves around two main areas of collaboration:

1. Leveraging Siemens’ Digital Enterprise portfolio, covering everything from manufacturing planning and design software to automation (including industrial communication networks and cloud solutions), will enable Northwater to optimize its battery production and increase its competitive advantage.

2. Supply of lithium-ion batteries. Siemens intends to purchase batteries from Northvolt once large-scale production facilities are put into operation. They are also exploring potential areas for joint development programs.

Northvolt is driving battery production to build a battery factory with an ultra-low carbon dioxide (CO2 ₎ footprint. Our Digital Enterprise portfolio will support Northvolt in building a state-of-the-art battery factory. We are delighted to be a partner in this project,” said Ulf Troedsson, President and CEO of Siemens Nordic.

Siemens said it sees the Northvolt initiative as a “reference project” for future battery production that will rely on the integration and digitalization of the entire value chain: from battery pack design to production planning, engineering and production services.

Once the project is completed in 2020, Siemens intends to purchase the batteries from the factory, making Northvolt the preferred supplier. Siemens will support the partnership with an investment of €10 million.