Norsk Hydro & Altor fund €2m EV graphite plant

The procurement of materials for electric vehicles batteries has become a hot topic for sustainability for manufacturers and a joint fund from Norsk Hydro and investment firm Altor will be used to aid in the growth of synthetic graphite startup Vianode.

The first phase of the plan will involve the construction of a new NOK 2 billion (€2.09 million) plant for Vianode in Herøya, Norway, in which the firm will supply graphite for use in batteries, reportedly with a lower CO2 output.

Read more: Elkem to pilot world's first carbon capture for silicon smelters

The average electric vehicle contains anywhere between 40 to 70kg of graphite, so it represents a huge untapped market for carbon emissions reductions.

Vianode, which currently only employs around 50 people, was founded in 2021 as a subsidiary of Norwegian silicon producer Elkem. The Altor Fund V, which is controlled by the two giants, will aid in its expansion.

The plant could employ as many as 100 people and the investment is expected to be finalised in the second half of the year.

"I would like to congratulate the parties on a very exciting industrial collaboration! The Norwegian Government has great ambitions for a green industrial boost where batteries are one of six focus areas," said Norwegian Minister of Trade and Industry Jan Christian Vestre.

"The purpose is to create new, green jobs, increase mainland investment, increase exports outside oil and gas and reduce greenhouse gas emissions. These are the kind of projects and partnerships we want more of when we now will go through the biggest restructuring of the Norwegian economy ever."

As Vestre stated, batteries are one of six areas for development as Norway looks to have a greener industry base. Other sectors include Maritime, the hydrogen economy, carbon capture and storage and offshore wind.

Read more: Norway's Elkem to invest in emissions-efficient infrastructure

Once operating at full capacity, the plant could produce enough graphite for 20,000 EVs per year - or a minimum of 800,000kg annually.

Elkem CEO Helge Assan said: “The market for battery materials is growing at an exponential rate and developing sustainable value chains is critical for the green transformation. Vianode aims to become a leading producer of sustainable battery materials, and this represents an attractive growth opportunity for Elkem."

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