Gränges plans to invest SEK 600 million over two years to double its battery cathode foil production capacity in Finspång, Sweden, to meet Europe's growing demand for battery components. The new capacity is expected to be operational in 2025.
Jörgen Rosengren, the CEO of Gränges, said, “Gränges started to invest in this area in 2021. Recently, we have experienced very high interest in our battery and electrification solutions from battery manufacturers and automotive OEMs. Our market launch plan for battery cathode foil is ambitious: Asia in 2022, Europe in 2023 and the Americas in 2024. A recently made agreement with a leading global battery manufacturer consumes our initially planned production capacity in Europe. To keep up a high pace, we are now investing in doubling our capacity for the European market."
Gränges' Navigate plan for sustainable growth places a substantial premium on meeting the market demand for battery and electrification components in Europe and North America, which is expanding quickly.
A crucial part of the lithium-ion battery cells required for the switch to electric vehicles is the battery cathode foil (BCF). For several years, it's anticipated that demand for BCF will increase by more than 25 per cent yearly.
William B. Shannon, the SVP for Gränges' Global Battery Foil Program, said, "Gränges has unique and unmatched advantages contributing to the strong customer interest we're now seeing: our global footprint and strong regional presence, our high ambition and proven performance in sustainability, and our deep technical know-how. We aim to take a leading position within battery components, such as battery foil, casing and thermal management components. The investment in Finspång is a very exciting step towards that goal."
The total SEK 600 million investments will occur over two years and be financed with internally generated cash flow and existing credit facilities. Gränges expects a return on this investment in line with or above financial targets.
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