Senior Technology Material invests €250 million in Sweden

Shenzhen Senior Technology Material announces today its plan to invest 250 million euros until 2025 to establish a production facility at Svista industrial estate in Eskilstuna, Sweden. The facility will be one of Europe’s largest factories of its kind and will supply Northvolt with separator film for lithium-ion batteries.

Shenzhen Senior Technology Material Co., is a leading global supplier of separators used in the manufacturing of lithium-ion batteries. The company is headquartered in the tech hub Shenzhen and supplies the world’s largest battery manufacturers with patented separator solutions. Its establishment in Eskilstuna, Sweden, is the company’s first investment in a production line outside of China. According to the management, the new facility is set to become European headquarters when the construction phase is completed in 2025. It will create local conditions for 500-600 new direct jobs.

Ibrahim Baylan, Sweden’s Minister for Business, Industry and Innovation, comments:
“Electrification and access to energy storage play a decisive role in the transformation of industry and society to combat climate change, and in making Sweden one of the world’s first fossil-free welfare nations. This is an important investment, not least for Eskilstuna, to ensure that batteries can be manufactured sustainably in Sweden.”

The site selection process for Senior’s production facility has been exhaustive. Eskilstuna was chosen for its strategic location as a logistics hub as well as the possibility of transporting raw materials sustainably via rail through Eskilstuna Intermodal Terminal. Another key reason was the availability of technology skills in the region. In addition, the higher share of carbon-free energy available in Sweden and Eskilstuna compared to other countries was a key advantage in the decision-making process, as this unlocks the possibility for Senior to achieve a low carbon footprint in manufacturing.

Xufeng Chen, Chairman of the Board, Senior Technology Material, says:
“Europe will be the world’s most important market for the electrification of transport and energy storage solutions in the future. In addition, the EU has set a target of completely replacing conventional cars with electric vehicles over the next 15 years. The market opportunities are vast and there is great potential for further development. Senior’s establishment of a production facility in Sweden is a key step in our global strategy.”

The production facility in Eskilstuna will supply Northvolt’s gigafactory in Skellefteå with separators.

“We believe that the strong cooperation between Northvolt and Senior will establish Sweden as one of Europe’s most important production hubs for battery materials and components for the automotive and energy storage markets. This, in turn, will have a profound impact and contribute to the development of Europe’s new energy industry,” adds Xufeng Chen, Chairman of the Board, Senior Technology Material.

Senior Technology Material’s establishment in Sweden and Eskilstuna will involve three phases. In the first phase, the company will rent a 13,900 sqm facility at Svista industrial estate from the real estate company Nyfosa. A letter of intent has been signed between Eskilstuna Municipality, Nyfosa and Senior to develop a 120,000 sqm plot of land adjoining the existing facility in Svista, with a view to expand operations in the second and third phases. Currently, the plan is to establish a 70,000 sqm facility by 2025 which is expected to create 500-600 direct jobs and a large number of indirect jobs.

“We are very pleased to welcome Senior to Sweden’s expanding battery industry. By tapping into Sweden’s low carbon energy mix and excellent conditions for modern manufacturing, Senior’s establishment and strong technical expertise will contribute to the sustainable supply of battery components for the European market,” says Andreas Scheibenpflug, Head of Business Ecosystem – Smart Industry & New Materials, Business Sweden.

This is once again a clear sign that the European battery strategy has been crucial in boosting investments on the continent. In addition to European companies investing (back) in Europe, we are seeing growing investments from Asian players as well. It is worth noting that Senior’s establishment is also the second Chinese company to establish itself in Sweden as a subcontractor to Northvolt. The first was Kendali, which is based in Skellefteå. Whereas Asia is still the dominant player, this is a positive sign that Europe is on the rise when it comes to battery production. 

For more information, read Business Sweden press release.