Dutch energy storage and battery company, Lithium Werks BV, and Chinese Zhejiang Jiashan Economic and Technological Development Zone Industry Corporation have signed a framework agreement with the intention of constructing a 60 hectares battery gigafactory in the Yangtze River Delta, Lithium Werks announced on Tuesday.
The Dutch company said total investments required are estimated at €1.6 billion.
The Lithium Werks factory and related facilities will produce battery cells for lithium-ion batteries, enabling the energy transition from fossil fuels to clean energy in order to reduce carbon emissions.
Lithium Werks expects to have installed production capacity of 500 gigawatts-hours per annum by 2030 as it continues to contribute to the shift to a carbon neutral world.
"With our Chinese partners’ help, and as we continue to grow both organically and through acquisitions, we will deliver the energy storage solutions that our customers increasingly ask for as the world transitions to clean energy," said Kees Koolen, chairman of Lithium Werks.
"We need safe, reliable, clean and sustainable energy storage. Batteries are an essential part of the energy transition. They enable us to store wind and solar energy to make it available whenever people need electricity," Koolen added.
The agreement, which was signed in the presence of the Chinese Premier Li Keqiang and Dutch Prime Minister Mark Rutte, marks the start of Lithium Werks’ plan to build multiple gigafactories across the world as part of a 15-to-20-year program that mirrors the long-term business models of the wind and solar industry.
Lithium Werks expects its revenue to exceed $1 billion by 2020 as it continues to grow its share of the rapidly expanding market for energy storage.
By Murat Temizer