Lars Carlstrom's Italvolt Spa has signed a binding agreement with Italian asset manager Prelios' Monteverdi Fund to acquire the former Olivetti industrial site covering 1 million m2 in the municipality of Scarmagno near Turin.
Italvolt plans to develop a gigafactory on the site for the production and storage of lithium ion batteries for electric vehicles, which will produce 45Gwh when in full-swing operation, representing one of the most important industrial projects of recent years in Italy, for a total investment of about €3.4 bn.
Italvolt will clean up and redevelop the land, building the new plant on 300,000 m2 of land, including a 20,000 m2 Research & Development facility.
The next step for Italvolt is obtaining building permits, expected to take place early in 2022, allowing work to begin in the second half of the year. The new factory will be designed by Pininfarina's Architecture Division with a strong focus on environmental and social footprint.
Italvolt CEO and founder Lars Carlstrom commented: 'The agreement with Prelios Sgr represents a key step forward in the implementation of our plan for construction of the gigafactory. We’re very happy to conclude the purchase of the area by the deadline recently confirmed by the local political institutions, which have made a significant contribution to promotion of Italvolt's project in recent months. The vacant land has plenty of potential, and we plan to restore it to the local community, creating jobs and cleaning up the site.'
The first half of 2021 saw strong growth in the electrical mobility industry in Europe and all over the world. In Italy, for example, the first six months of 2021 saw four times as many electric and hybrid plug-in vehicles registered as in the first half of 2020. Demand for lithium ion batteries in Europe is expected to grow at a rate of 24% a year, led by electric mobility, exceeding 1,200 GWh by 2035. At present, in view of the gigafactory openings announced in Europe, there is a gap in production of more than 250GWh.
Lars Carlstrom added: 'We’re proud to promote a project that will become the biggest gigafactory in southern Europe. We’re confident that it will open the doors to new industrial initiatives for battery production in Italy. We need to speed up battery production to meet the challenging target proposed by the European Commission of completing the transition to a zero emissions automotive industry by 2035, and Italvolt is ready to do its part!'
Prelios Sgr CEO Patrick Del Bigio said: 'We're very happy with the results achieved by this operation, because the location that housed the historic Olivetti factory will return to life over the coming months with a new industrial project in the electric mobility business, a highly strategic and innovative sector today, just as Olivetti was in information technology in the 1960s. So the site retains its solid industrial vocation, with all the socio-economic benefits this will bring, perfectly consistent with its growing green prospects. With this in mind, Prelios SGR has been strongly committed to the success of the transaction, working closely with the local authorities and all the players involved, and ensuring the best valuation of the property.'
Closing is expected to take place within 12 months.
