Consortium plans to build Germany’s third Li-ion gigafactory

Published on: August 31, 2017 9:22 amBy: ESJ


Holger Gritzka CEO TerraE holdings

Raw materials firm Magnis Resources announced it had signed a memorandum of understanding on August 28 with TerraE-Holdings, the consortium established to build a 34GWh factory in the country by 2028.

The consortium of 18 companies and research institutions from throughout the supply chain plan to construct the large-scale lithium-ion battery cell manufacturing plant in Germany.

TerraE Holding was founded in May, after six member companies in the Kompetenznetzwerk Lithium Ionen Batterien — Lithium ion battery competence network formed an initiative to establish large-scale series manufacturing.

Holger Gritzka, CEO of TerraE Holding, told ESJ that: “The number of cells will depend on the type of cells, and this will depend on customer demand.”

Gritzka also confirmed that the consortium had “nothing to do with Tesla” and a decision had yet to be made on the location, although there is speculation it will be built on two of five sites earmarked within the country.

The factories will be operated as “foundries,” to allow TerraE Holding, which will build and operate the factories, to manufacture bespoke lithium-ion cells to customers’ specifications.

The project, which has already secured €5.2 million ($6.2 million) in subsidies from Germany’s Ministry of Education and Research, should cost around €1 billion to complete.

 TerraE Holding GmbH is in negotiations with partners inside and outside of the consortium to secure a long-term technological advantage, and is beginning discussions with potential customers and investors, in particular from industrial sectors (forklifts, landscaping equipment, cordless tools), energy storage and electromobility (city buses, passenger cars, trucks).

The latest gigafactory announcement comes after Germany’s chancellor Angela Merkel broke ground at another €500 million plant to assemble lithium-ion energy-storage units for Daimler in May.

Eighteen months ago ground was broken on Germany’s first gigafactory, the 5GW, Batterien-Montage-Zentrums (BMZ) factory in Karlstein-Großwelzheim (Karlstein), Germany, that is due for completion in 2020.

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