Statevolt’s $3.2B UAE Gigafactory to bolster electrification in MEAI

Statevolt has announced plans to construct a cutting-edge battery Gigafactory in Ras Al Khaimah, UAE, with a significant capital expenditure of $3.2 billion. The venture, known as Statevolt Emirates, is set to implement a modular design approach, enabling swift market entry and production diversification based on technology readiness. The Gigafactory will initially produce semi-solid state battery cells, leveraging next-generation technology to enhance safety and lifespan, before transitioning to solid-state battery cells at full capacity.

Expected to commence operations by the end of 2026, the facility will span 60 hectares in the Al Ghail Industrial Zone within RAKEZ.

Lars Carlstrom, Founder-CEO of Statevolt, expressed his vision, stating: At Statevolt, our commitment to the global energy transition is founded on our focus on sustainability, efficiency and innovation.

“Our $3.2 billion investment in the Ras Al Khaimah gigafactory, using next-generation technology, highlights this commitment, aiming to meet the growing demand for energy storage solutions across Africa, India, the UAE, and the Middle East. We greatly value the support from the Ras Al Khaimah Economic Zone authorities.”

The Gigafactory holds promise to generate up to 2,500 direct job opportunities, contributing significantly to economic growth in Ras Al Khaimah and the wider region. It signals the UAE’s goal of becoming a leading hub for green technology and energy transition with the objective of solidifying the region’s position as a pioneer in sustainable industrial development as the automotive world transitions to electric vehicles.

RAKEZ Group CEO, Ramy Jallad, welcomed Statevolt’s initiative, remarking, “We are thrilled to have welcomed Statevolt to our growing community of pioneering enterprises dedicated to sustainable innovation. The outstanding facilities provided by the emirate of Ras Al Khaimah are in perfect harmony with Statevolt’s ambitious production objectives and RAKEZ is committed to supporting the company’s journey every step of the way, ensuring all the requirements are fulfilled for the successful gigafactory project.

“This synergy enhances our collective pursuit of sustainability, aligning with the emirate’s Energy Efficiency and Renewables Strategy 2040. Statevolt’s presence marks a significant milestone in our journey towards a greener future and reinforces our commitment to attracting leading-edge companies that share our vision for creating a sustainable ecosystem.”

Lars Carlstrom was a speaker at the AMS Automotive Evolution North America event last year, where at the time, he was also the CEO of Italvolt, which was jettisoned, in part due to lack of support from the Italian state. North America has the advantage of strong funding for battery production through the Inflation Reduction Act. Other examples of the public-private collaboration to support the shift towards electrification can be seen in the £2bn injected into UK automotive industry to drive sustainable growth.

Such funding is clearly critical for achieving the green energy transition and may explain in part, Carlstrom’s decision to establish Statevolt in the UAE. In terms of the UK’s own transition, Carlstrom told AMS back in 2022, (pre-investment): “I like the idea about going all electric in 2030 but I would say it’s very optimistic. I would say it’s impossible.” At the most basic level, state funding allows for transitional viability. 

With a focus on key export markets like Africa, India, the UAE, and the broader Middle East region, the Ras Al Khaimah Gigafactory anticipates achieving an annual production capacity of up to 40GWh upon reaching full operation.