Two former Tesla executives plan to build a $4 billion (£3.3bn) battery facility in Sweden.
Peter Carlsson, CEO of Northvolt, who previously managed Tesla’s supply chain and COO Paolo Cerruti, also an ex-Tesla executive, plan to begin construction during the second half of 2018.
They are looking to rival the scale of Tesla’s Gigafactory in Nevada, targeting annual cell production equivalent to 32GWh when full production is expected to start in 2024.
The factory is aimed to become the largest of its kind in Europe, supplying the transport sector and other industries with energy storage solutions.
The project has secured funding worth €3.5 million (£3m) from InnoEnergy, the innovation engine for sustainable energy across Europe.
It will support Northvolt to complete technology partnerships, business development, supply chain, factory and process design as well as site selection, environmental and recycling plans.
Mr Carlsson said: “InnoEnergy is the gateway to the largest and most valuable innovation ecosystem in Europe. The investment will support us in realising our vision of creating Europe’s largest scale battery cell production facility. But more than that, InnoEnergy’s vast network has the power to support us for years to come.”