Dutch startup Lithium Werks BV recently confirmed that the company signed a deal worth $1.85 billion as part of an effort to build a new storage battery facility in China. This was confirmed by the company's founder Kees Koolen on Tuesday.
In a statement to Reuters, Mr. Koolen said that the project includes the 15 to 30 percent financial backup from various Chinese and regional financial sources. He added that 50 percent of the investment came from various development banks, and the rest is provided by Lithium Werks and its equity investors.
Mr. Koolen has a 41 million euros investment in Lithium Werks. Because of this massive investment, and the fact that he founded the startup company, he holds a 50 percent stake, although he said that this stake will be diluted as the company continues to grow.
According to the company, the massive facility, once completed, should be able to produce batteries with up to 500GWh of storage capacity per year by the year 2030.
The latest deal between Lithium Werks and the Chinese government is one of the many commercial deals signed following the meeting of Chinese Premier Li Keqiang and Dutch Prime Minister Mark Rutte in The Hague on Tuesday.
Lithium Werks concentrate mainly on the development of lithium iron phosphate batteries. These are not the usual type of batteries as they come in sizes as big as shipping containers. This type of battery is very quick to charge of supports a wide variety of use. Among the main applications of this type of battery include wind and solar farms, as well as the shipping industry.
Because of the growing popularity of electric cars, battery development and technology has become one of the most lucrative markets in recent years. However, Mr. Koolen predicts that the battery storage market will continue to grow and will be far larger than the current demand for electric cars.
Mr. Koolen said that a number of European counties have already shown interest and support to his company. The company has also received investments from the Dutch University of Twente, as well as the Dutch development agency Oost NL. On the other hand, Mr. Koolen said that future projects are being stalled because of bureaucratic requirements.
The Lithium Werks facility is slated to be built in the Yangtze River Delta. The factory is under development in cooperation with China's Zhejiang Jiashan Economic and Technological Development Zone Industry Corporation.
