Northvolt has signed a letter of intent to buy a closed paper mill in central Sweden from Stora Enso to develop the site into a gigafactory for active material and lithium-ion battery cells.

The plant at the Kvarnsveden Mill and the surrounding industrial area in Borlänge will be using 100% clean energy from the region, the battery specialist said.

It is expected to start operations in late 2024 and slated to employ up to 1,000 people. Fully built out, the site will have a potential annual production capacity of more than 100 gigawatt hours of cathode material, with will enable cell assembly at multiple Northvolt facilities.