We are building a next-generation lithium-ion battery factory with a new concept focusing on scale, vertical integration and highly controlled manufacturing. The execution is fundamentally different compared to current battery production facilities. We are dedicated to creating a circular system encompassing battery manufacture and recycling, and have the highest ambitions for life cycle management with our cradle to grave approach. Building the factory in Sweden, given its clean power base, will enable us to utilize fossil free and inexpensive energy.
As an initial step we will set up Northvolt Labs, which includes a demonstration line and R&D facility, that will be used to qualify and industrialize products and processes together with our customers. Once cells are ready for mass production, they will be produced at the large-scale factory, Northvolt Ett.
Compared to traditional lithium-ion battery manufacturers, our production process spans across many portions of the value chain and the factory is designed to achieve optimal scale benefits. It gives us a structurally lower cost level also allows for a high degree of cost and quality control.
Our first large-scale battery factory will be established in Skellefteå in northern Sweden. Skellefteå is part of a raw material and mining cluster and has a long history of process manufacturing and recycling. Northvolt Ett will serve as Northvolt’s primary production site, hosting active material preparation, cell assembly, recycling and auxiliaries. The first quarter of the factory will be completed in 2020. Ramping up to full capacity, Northvolt Ett will produce 32 GWh of battery capacity per year.
Our demonstration line and research facility will be established in Västerås, 100 kilometers west of Stockholm. Västerås has a strong standing within energy and electrification. It is home to several multinational companies, including ABB, with world class engineering and R&D competence in electrification and process optimization. Northvolt Labs will be used to qualify and industrialize products and processes together with our customers. Start of production at Northvolt Labs is expected in 2019 and will ramp up to 350 MWh of battery capacity per year.
Our facility to build battery modules and energy storage solutions will be established in Gdańsk, Poland. It will consist of a state-of-the-art production facility, including a R&D center. Gdańsk is home to a cluster for the electromechanical industry and it has proximity to a strong supply chain ecosystem, labor markets and end-customers in continental Europe. As of spring 2019, Northvolt Battery Systems has entered production and is ramping up to 10,000 modules/year.