Dutch energy storage and battery company Lithium Werks announced that it has a signed a deal to construct a €1.6bn battery gigafactory in the Yangtze river Delta, China.
For the construction of the facility, Lithium Werks has signed a framework agreement with Chinese Zhejiang Jiashan Economic and Technological Development Zone Industry Corporation.
To be built on a 60 hectare site, the company’s factory and related facilities will manufacture battery cells for lithium-ion batteries.
The company expects to hold an installed production capacity of 500GWh per annum by 2030.
Lithium Werks chairman of the board Kees Koolen said: “With our Chinese partners’ help, and as we continue to grow both organically and through acquisitions, we will deliver the energy storage solutions that our customers increasingly ask for as the world transitions to clean energy.”
The agreement with the Chinese entity marks the beginning of Lithium Werks’ plan to construct multiple gigafactories across the world as part of its 15-to-20-year program.
By increasing its share in the expanding market for energy storage, Lithium Werks expects to grow its revenue to more than $1bn by 2020.
Koolen said: “We are grateful and happy to work with our Chinese partners, the first to support our strategy to have a factory in their country. Speed of execution is key as is evidenced by building permit and other regulatory processes in China being completed within 100 days.”
The firm has partnered with the regional development organisation Oost NL and the University of Twente. Oost NL has invested in Lithium Werks.
In partnership with the University of Twente, the energy storage company is developing a research campus, which will employ some 2,000 engineers and other experts by around 2025 to focus on energy storage, transport and smart software.
Oost NL CEO Marius Prins said: “These developments show that Lithium Werks can grow into a company that makes an important contribution worldwide to the way we handle energy and energy storage. As the development company, we were among the first to invest in Lithium Werks.
“We firmly believe that Lithium Werks’ energy research R&D activities will contribute significantly to the strength of East Netherlands’ economy.”