With plan for one of southern Europe's biggest gigafactories, Italvolt buys land

Italvolt Spa, a supplier of green batteries, has signed an agreement to purchase a one million square meter piece of land located in Scarmagno, in Italy's northwest Piedmont region, to build one of Europe’s largest gigafactories.

The deal was signed with Prelios Sgr, manager of Fondo Monteverdi.

Italvolt's gigafactory, which once fully operational, is set to become one of Europe's largest production and storage sites of lithium batteries for electric vehicles, with a planned capacity of 45 GWh. This represents one of the most important and largest industrial investment projects in Italy, involving an overall investment of around 3.4 billion euros.

The site in Scarmagno has been selected for its existing infrastructure and strategic geographical location in terms of good road and rail connections. The site will be able to leverage Piedmont's productive capability, the leading region in Italy for automotive industrial production. The land will be reclaimed and repurposed by Italvolt, dedicating an area of 300 thousand square meters to constructing the new plant. Out of this, 20 thousand square meters will be dedicated to creating a Research & Development centre.

The next step for Italvolt is obtaining building permits by the beginning of 2022 so work can begin in the second half of the year. Pininfarina's Architecture Division will design the new plant with a strong focus on environmental and social impact. Pininfarina intends to develop a new generation industrial plant integrated into the economic and social fabric of the region.

Lars Carlstrom, CEO and Founder of Italvolt, stated: "The agreement with Prelios Sgr represents a crucial step in the implementation plan of our gigafactory project. We are delighted to have concluded the purchase of the land with input from local authorities. In recent months they have made a significant contribution to the promotion of Italvolt's project. The decommissioned site offers excellent potential to restore the local industrial heritage, offering jobs and environmental improvements."

In the first half of 2021, the electric mobility industry saw a significant increase in growth, not only in Europe but globally. In Italy, for instance, in the first six months of 2021, registrations of electric and plug-in hybrid cars quadrupled, compared to the same period last year. As a result, the demand for lithium-ion batteries in Europe is expected to grow at a rate of 24% per year, driven by electric mobility exceeding 1,200 GWh in 2035.

Lars Carlstrom added: "We are proud to be the promoters of a project that will become one of the largest gigafactories in Southern Europe. We are certain that this will pave the way for new industrial initiatives dedicated to battery production. To achieve the challenging goal, set by the European Commission, to complete the transition towards a zero-emission automotive industry by 2035, it is necessary to accelerate battery production, and Italvolt is ready to do its part."

Patrick Del Bigio, CEO of Prelios Sgr, commented: "We are very pleased with the result achieved. The area that hosted the historic Olivetti will come back to life in the following months with a new industrial project focused on the business of electric mobility, which today presents itself as a highly strategic and innovative sector, just as Olivetti was in the 1960s in the IT sector. Therefore, the industrial heritage of the site remains intact with important socio-economic developments that will derive from the focus on green industrialization. With this focus, Prelios SGR has also been particularly committed and has contributed to the operation's success, working in close coordination with representatives of the public administration and all the other actors involved, as well as defining the best value of the real estate asset."