Shanghai-listed Putailai (PLT) is is investing $1.3bn in a Swedish factory. The factory will be Europe’s largest factory for manufacturing anodes, a crucial part of the batteries that go into electric vehicles.
The plant is located in Sundsvall in central Sweden where it will take advantage of the country’s green electricity.
Northvolt, the Swedish start-up that has become Europe’s leading player in batteries, will be the factory’s first main customer.
People close to Northvolt suggest that buying anodes from Sundsvall could cut the company’s carbon footprint by more than 90 per cent compared with importing them from China.
“An important part of Northvolt’s strategy to create the world’s greenest battery is to invite subcontractors to produce materials and components on fossil-free electricity grids and in line with Europe’s high environmental standards,” said Alexander Streif, head of supply chain management at Northvolt.
PTL is among the four biggest Chinese groups in the sector that together account for roughly half the global market.