German industrial giant Siemens has signed up as the latest major backer of Northvolt, the fast-emerging battery technology start-up that has already forged links with Vestas in the wind power sector.

Siemens will supply its digital enterprise technology as part of a €10m ($11.7m) investment in a partnership with Northvolt that will include buying batteries from the company, which is planning to build Europe’s largest battery factory in its Swedish homeland.

Siemens said the partnership aims to “produce high-quality, green lithium-ion batteries” that can help address a potential “major” battery supply deficit in Europe as the continent “undergoes large-scale conversion to sustainable transportation as well as a deep integration of renewable sources in the energy mix” with only limited production capacity in place or planned.

The German group said: “Siemens sees the Northvolt initiative as a reference project for the battery production of the future, which will rely on the integration and digitisation of the entire value chain”.

Northvolt CEO Peter Carlsson said: "The European industry is moving rapidly towards electrification. With its world-class expertise within electrification, automation and digitalisation, Siemens will become an important technology partner, supplier and customer to Northvolt in this coming transition.

Northvolt’s technology and the scale of its ambition – a $5bn plant starting production in 2020 – has already seen the company backed by the likes of ABB and Vestas.

The Danish wind power OEM last year agreed to invest an initial €10m in a joint seven-year R&D push to develop systems that can “integrate battery storage solutions into wind turbines and full power plant system design”.

Transition

Siemens backs Northvolt to secure 'green battery' supply