Northvolt, a Swedish electric vehicles (EV) battery manufacturer, has announced plans to establish a battery manufacturing plant in Heide, northern Germany. 

Northvolt expects the new 60GWh gigafactory to start delivering lithium-ion batteries to the European market from 2025, the company said in a statement on March 15. It expects to create 3000 jobs. 

The new factory will increase Northvolt’s pipeline of manufacturing capacity under development to over 170 GWh. 

Alongside its battery production, the company targets an on-site battery recycling facility to reuse byproducts from the production process, according to the Northvolt statement.

“We’re excited to announce Northvolt Drei, a project which fits well into a promising future cluster of clean technology ventures emerging in northern Germany and advances the wider European transition towards a sustainable society within which Germany plays a crucial role,” said Nothvolt co-founder and CEO Peter Carlsson in the statement. 

Northvolt Drei will be the company’s third gigafactory producing lithium-ion battery cells, alongside Northvolt Ett in Sweden and Northvolt Zwei in Salzgitter, Germany, which is scheduled to commence production in early 2024.

Germany received the second largest FDI inflows in the world after China in the battery supply chain from 2016 to 2022. According to fDi Markets, the country has attracted 40 investment projects in battery markets since 2016, worth around $10.8 bn.