an ex-tesla exec’s $4.2 billion battery battle with musk

Swedish company founded by former Tesla, Northwater AB
Executives hope to cut the cost of electricity storage by half with 4 billion euros ($4. 2 billion)lithium-
Ion battery factoryThe Stockholm-
According to founder Peter Carlson, the US-based company hopes to raise 1 billion euros by 2018, when it plans to break ground at a factory in the second half of this year, Tesla\'s former head of procurement and supply chain.
About a month later, Northwater will publish a list of possible Swedish manufacturers.
\"Europe will be a very important energy storage market,\" Karsson said on the phone . \"
\"There is a huge demand for backup --up power.
In addition, there is also a considerable automotive industry, promising to vigorously develop electric vehicles.
\"Energy storage is seen as a missing part of the world\'s transition to zerocarbon economy.
The battery can fill the power gap of intermittent solar and wind energy. Lithium-
For automakers, ion packs are also key to a new generation of plugsin vehicles. The 46-year-
The old chief executive of Vattenfall AB, Sweden\'s largest utility, has persuaded it to invest 5 million crowns ($550,000)
So far, $14 million has been raised.
Karsong\'s funds for equity investors accounted for half of the funds needed to build the factory, while the rest were raised through debt.
Northwater is applying for a loan from the European Investment Bank and may issue green bonds to fund it.
\"We don\'t usually invest in hardware,\" says Andreas Regnell, head of strategy at Vattenfall, who may be willing to invest more money into the business.
\"We think this is more of a business development effort.
If this happens, there is a huge benefit for us because we have invested a lot of money in the power mobility infrastructure.
\"The EU sells 19 million cars a year,\" Karsson said . \".
\"If even the 10% is electric, which is a conservative estimate of 2025, it would be a huge opportunity for us.
Automakers are racing to develop batteries.
Power versions of their vehicles to help the government meet emissions-
Emission reduction targets set under the 2015 Paris climate agreement.
In order to achieve the EU target, by 2021, the average fleet emissions will need to drop by 27% compared to the 2015 level.
Compared with improvements since 2010, this will require more than double vehicle efficiency over the next five years.
Tesla, Nissan Motor Company
GM already sells electric vehicles in Europe.
Volkswagen plans to produce 30 different types of electric vehicles by 2025.
Tesla is said to be considering expanding into Europe, but karsong is focused on supplying local automakers, not his previous employer.
\"All of Tesla\'s batteries are used to support their products,\" he said . \".
\"There are a lot of other needs.
At present, batteries are the most expensive components in electric vehicles. Lithium-
Ion batteries cost about $200
Hour and Bloomberg New Energy Finance projects will still cost around $109 per kilowatt Hour on average. hour by 2025.
The team estimates that Tesla can make batteries at less than $100 per kilowatt --
One hour from the United States to 2026S. gigafactory.
Northwater\'s initial plant in Sweden plans to produce about 8 gigawatts of capacity.
The battery is 32 gigawatts a year.
The project was fully operational for a few hours in about six years.
The company is expected to reduce the cost of lithium
Karsong said the ion battery pack was significant, aiming to halve the price by 2022.
Logan Goldie said: \"The scale that Northwater is talking about will definitely reduce the cost of the battery pack --\"
Scot, energy storage analyst at BNEF.
He still \"doubted\" whether Northwater could raise the required € 4 billion.
\"You can count the institutional investors who inject money into the energy storage project with two hands.
They remain vigilant about the technical and market risks in the project, \"Goldie-Scot said.
\"We expect investors in battery production to share these concerns, especially in pure-
Play manufacturers.