As European OEMs ramp up electric vehicle production, and the EU, UK and other governments across the region seek to phase out internal combustion engine vehicle sales, the demand for lithium-ion batteries is skyrocketing. To meet this demand, carmakers, battery cell manufacturers and start-ups are rushing to increase supply and production of battery cells, with many ‘gigafactories’ planned across Europe.

While regional production in Europe will be a must to meet demand, efficiently scaling production of battery cells will be a challenge for the industry. A largely chemical process, battery cell production differs significantly from any automotive components and requires specific technical, safety and handling considerations that can also limit output. Likewise, many upstream materials and minerals will continue to be imported, putting further constraints on regional production.

A newcomer on the scene is Italvolt, which is planning a 45 GWh battery gigafactory in Scarmagno, near Turin in Italy’s Piedmont region, at the site of a former factory from Italian telecommunications producer Olivetti. Italvolt, which is set to begin initial production in 2024 has a different approach to the battery market: it will establish gigafactory production itself as its key offering.