Olivia Cavallaro Auto 07.22.2022 04:Jul AM EDT

Sweden's Northvolt Teaming Up with Stora Enso to Develop Batteries from Forest Byproducts

The two European companies are looking to create sustainable batteries.

Sweden's battery maker Northvolt is working with the Finnish-Swedish forestry company Stora Enso to develop batteries made of a forest byproduct. The companies announced the endeavor on Friday, saying they plan to create sustainable batteries by harnessing the potential of lignin-based hard carbon on an industrial scale.

Bloomberg reported that the goal of both Northvolt and Stora Enso was to develop a battery with an anode that would be entirely sourced from European raw materials found in the Nordic forest to diminish environmental footprint and costs. Both companies have entered into a Joint Development Agreement for the endeavor.

"We are exploring a new source of sustainable raw material and expanding the European battery value chain, while also developing a less expensive battery chemistry," Northvolt chief environmental officer Emma Nehrenheim explained.

What is forest byproduct lignin?

Lignin is defined by Britannica as a "complex oxygen-containing organic polymer that, with cellulose, forms the chief constituent of wood." This plant-derived polymer is found in the cell walls of dry-land plants and is one of Earth's biggest renewable sources of carbon.

Lignin also makes up about 20% to 30% of trees. Stora Enso's lignin-based hard carbon, Lignode® will be used in developing sustainable batteries, which cell design, production process development, and scale-up will be handled by Northvolt.

Demand for Batteries Fueled by Rising of Electric Vehicles

The skyrocketing gas prices fueled by the Russian invasion of Ukraine have forced consumers to turn to electric vehicles as a more affordable alternative. Shopping data from TrueCar Inc. reported by Forbes revealed that prospects looking up electric cars or EVs online increased to 280% in February versus a year ago.

TrueCar Inc.'s lead industry analyst Nick Woolard remarked that it was the biggest year-over-year increase the company has ever seen. In addition, shopping for hybrid cars has also increased up to 83%.

According to Reuters, German carmaker Volkswagen is also preparing for this shift to electric vehicles by investing hundreds of millions of dollars in Sweden's Northvolt. Volkswagen hopes to secure battery supply from the Swedish battery manufacturer for its electric vehicles.

In a press release, Nehrenheim explained that the partnership between Northvolt and Stora Enso is set to not only explore a new source of sustainable raw material for EV batteries but also "[expand] the European battery value chain," while "creating a positive impact both on society and cost." Stora Enso's lignin-based Lignode will play a vital role in developing such sustainable batteries.

In February, Northvolt purchased an old Swedish paper mill from Stora Enso to convert it into a cathode material factory by the end of 2024. The company hopes to establish an annual production capacity of more than 100-gigawatt hours.

Meanwhile, Stora Enso's pilot plant for bio-based carbon materials is based in the Group's Sunila production site in Finland. Here, lignin has been industrially produced since 2015, producing an annual capacity of 50,000 tonnes. Stora Enso has since grown into the world's largest kraft lignin producer.