Eurocell-EMEA gigafactory to be one of EU’s largest

GLOBAL electric-vehicle battery production is set to receive another boost with next-generation battery company Eurocell-EMEA to build its first European gigafactory.

The Anglo-Korean company has confirmed it is in advanced discussions to build the plant in the Netherlands, supplying battery cells to the energy storage and e-mobility producers across the continent.

Eurocell intends to construct the gigafactory in two phases, with full capacity reached as early as 2025.

It says the first phase will produce advanced battery cells at scale by early 2023 for existing European customers with the second phase, potentially on the same site.

By 2025 it will be capable of producing more than 40 million cells per year, though the number of gigawatt hours (GWh) that will represent is yet to be confirmed.

The company claims it will produce ‘production ready’ technologies within 12 months using its existing battery product, which is verified and validated for scaled-up manufacturing.

The project will require an initial investment of US$800 million (A$1.16b) rising to US$2 billion (A$2.9b) by 2028 to support Europe’s fast-growing energy storage and EV markets in Europe.

It is expected to create hundreds of direct and indirect jobs, transferring vital skills from South Korean battery experts, as well as boosting the economy in this strategic sector crucial to achieving the Netherlands’ and Europe’s net zero ambitions.

Eurocell’s chief commercial officer Nick Clay said the Netherlands’ ambitious climate policies made it an attractive location for its first European gigafactory over Spain and the UK, where the company is based.

“With rapid expansion plans in Europe, Eurocell is encouraged by the positive engagement we have had with both the Dutch Government and NOM investment and development agency for the Northern Netherlands over the last few months.

“As we enter the final stages of discussions, we are confident that we will be able to confirm the exact location of our first European Gigafactory in the near future.”

Eurocell-EMEA’s high-capacity battery technology, which it claims produces cells that last more than 10 times longer than conventional lithium-ion cells, is developed in South Korea by joint venture partners including Eurocell, FIC Advanced Materials and Indong Advanced Materials, which have decades of experience in electro-chemistry, building Gigafactories and high-volume battery production.

The Netherlands plant will be the latest in a growing list of gigafactories in Europe, which include the 32GWh LG Chem in Poland, Samsung SDI (20GWh) and SK Innovation (7.5GWh) in Hungary, Northvolt (16GWh) in Sweden, Envision AESC (1.9GWh) in the UK and 8GWh Contemporary Amperex Technology Co. Limited (CATL) plant in Germany.

Chinese-owned CATL – the world’s biggest battery producer – is also building a huge 100GWh plant in the Hungarian city of Debrecen, which will be the biggest in Europe and will cover a 221-hectare site, eventually supplying both cells and modules to European vehicle manufacturers including BMW, Mercedes-Benz, Stellantis and Volkswagen.

Then there’s Tesla’s much publicised Gigafactory near Berlin, which has begun producing batteries and vehicles, starting with the Model Y, but has been plagued by production issues. As is often the case with the Californian carmaker, production targets and timing are a movable feast, but founder Elon Musk has claimed it will eventually produce 500,000 vehicles annually.

More European gigafactories will be needed to meet growing demand. Until then China will continue meeting the demand with BYD supplying its Blade battery technology to Tesla’s Giga-Berlin.

Meanwhile, BMW will use cylindrical-style battery cells for its Neue Klasse (New Class) electric vehicles supplied by Guangdong-based EVE from 2025.

EVE is ramping up to produce a new manufacturing facility in central China to produce its new batteries, as a greater number of customers move to large-format cylindrical batteries and away from prismatic cells.

BMW says the Neue Klasse platform will allow it to produce better, dedicated electric vehicles, with the first two models are expected to be electric versions of the 3 Series and X3.

GoAuto understands the vehicles will initially be assembled at BMW’s Debrecen plant in Hungary, alongside CATL’s forthcoming battery facility, which will also supply cylindrical batteries, and at its homebase in Munich, Germany, before a third facility comes online in San Luis Potosi, Mexico, in 2027.