Volvo Cars and Northvolt Break Ground on Gigafactory

The facility is expected to produce batteries for around half a million cars annually.

Business Region Göteborg

Construction of Volvo Cars and Northvolt’s joint Li-ion battery gigafactory in Gothenburg, Sweden, is now underway. When finished, the facility will employ more than 3,000 people and have the capability to produce up to 50 gigawatt hours of cells annually, enabling the production of batteries for approximately half a million cars each year.

Work at the site will start on October 1.

During the summer, Novo Energy had its environmental permit for the new plant approved. In August, the City Planning Committee in Gothenburg also approved the building permit for the first phase, entailing 130,000 square meters. The building will include the first production line, which is expected to be operational in late 2026.

“Novo Energy’s gigafactory will be a landmark for the green transition,"  Gothenburg Mayor Jonas Attenius said. "It combines everything – important technology, modern industry and thousands of jobs with good conditions. This makes Gothenburg better."

Purified wastewater will be used to cool the plant, which is unique at this scale. Two large pipes, one meter in diameter, are currently being laid to transport the water from the region’s wastewater plant to the gigafactory, and opposite, a distance of 6 kilometers. 

Göteborg Energi and Vattenfall are building a power station north of the site for connecting the gigafactory to the regional grid’s 130 kV power line. Preparatory work is also underway to connect the site to the district heating, water, stormwater and wastewater systems.   

Building the gigafactory will involve a large number of construction jobs, as well as increased traffic. Work is underway to facilitate the building process and reduce the impact on people working in the area and society at large. 

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