Swedish storage specialist Northvolt intends to build its third lithium-ion battery gigafactory in the state of Schleswig-Holstein that is home to Germany’s cleanest energy grid thanks to an abundance of onshore and offshore wind power.

The factory in Heide north of Hamburg is slated to start output in late 2025 and have an annual production capacity of 60 gigawatt hours – enough to supply about one million electric cars with batteries.

“It matters how we produce a battery cell,” chief executive Peter Carlsson said.