Statevolt’s Lars Carlstrom on the upcoming $3.2bn battery gigafactory in UAE

Statevolt, a US headquartered green industrialisation company, announced plans earlier this month to construct a new state-of-the-art, technology-agnostic battery cell gigafactory in the UAE’s Ras Al Khaimah.

With a capital expenditure of $3.2bn, Statevolt Emirates, as the UAE venture will be known, aims to set new standards of technological innovation in the energy storage sector (ESS). This ambitious project, with a site spanning 60 hectares in RAKEZ, is anticipated to generate up to 2,500 direct  job opportunities, fostering economic development in Ras Al Khaimah and the surrounding region.

Gulf Business talks to Lars Carlstrom, founder and CEO of Statevolt Emirates.

Q. Tell us about Statevolt’s future facility in RAK.

At Statevolt, we aim to create synergies within sister projects, keeping the same concept – helping to support energy storage solutions – as both countries, the US and the UAE, are working on improving the grid and the infrastructure needed to allow for swifter implementation of green industrialisation.

However, we also have to consider the difference in geographic locations, which is reflected in our business plans in terms of markets – for example, in the US, our main focus will be producing for local markets, while in UAE, our focus will be split between supporting local markets and exporting our cells to India, Africa, and Gulf countries.

Our gigafactory in Ras Al Khaimah will specialise in battery cells production. It is a technology agnostic modular production facility, first lines of which will be dedicated to semi-solid battery cells, moving to solid-state battery cells when activating further lines. We plan to reach a production capacity of 40 GWH.

With a capital expenditure of $3.2bn, the factory will be built on 60 hectares of land in the Al Ghail Industrial Park in Ras Al Khaimah.

Q. The UAE has an ambitious net zero target along with an EV strategy. What role will your facility play in it?

Our collaboration with the Ras Al Khaimah Economic Zone underscores our dedication to advancing renewable energy solutions in the region, positioning the emirate and the UAE as key players in the energy storage sector.

Our battery cells have several uses, including but not limited to energy storage solutions (ESS), electric vehicles (EVs), and marine applications. However, our current strategy and focus is to meet the surging global demand for energy storage solutions (ESS), which are crucial for stabilising the grid, enhancing renewable energy integration, and improving energy efficiency.

Our offerings will play a crucial role in the UAE’s Road to Net Zero vision. These advanced batteries can support various applications, enabling the decarbonization of key sectors.

Q. What made you choose RAK – over other sites in the UAE and what advantages do you see in the location?

The commitment and effort the UAE has been putting towards sustainability and green industrialisation is one of the main reasons we chose it for our latest venture. We are extremely excited to support the UAE’s Vision 2031 and Road to Net Zero – as one of the world’s most prospering economies and leaders in sustainability and green energy transition, the country shows a lot of promise and aligns perfectly with Statevolt’s commitment to sustainable industrialisation.

Statevolt Emirates, as the first gigafactory for battery production in the UAE, saw a huge untapped potential in Ras Al Khaimah, in particular. With RAK’s Energy Efficiency and Renewables Strategy 2040, we saw a window for sustainable and innovative developments – making it a perfect fit for our new venture.

RAK’s rapid development, ambitious leadership, and collaborative authorities make it an ideal location. Seeing an excellent opportunity in Statevolt, they have shown their willingness to support the venture every step of the way.

Furthermore, over the years, we aim to contribute to RAK’s economic development through direct job creation and community investment, including educational programs and upskilling initiatives for its citizens – in line with the UAE’s Emiratization goals.

Q. You have previously established factories in UK, Italy and the US. What lessons do you bring here?

We are very aware that working with the right partners will be key to the success of a project of this size. As with our project in the US, we will partner with a range of companies with significant experience in this space to bring this project to life.

Our other projects have also shown us the importance of having the government’s support, and we are extremely grateful for all the support the RAKEZ authorities have shown us so far. We are confident that by working together, we will achieve great success.

Q. What are the post-production plans for the factory – who will you supply to, where and at what numbers?

Statevolt Emirates’ post-production plans involve supplying our next-gen batteries to various markets and leveraging our strategic location. Being in the UAE positions us closer to key export markets like Africa and India, enhances logistical efficiency and facilitates smoother business operations.

We anticipate supplying batteries to a diverse range of customers, including targeted industries such as battery parks and more consumer-focused products such as power walls. Our goal is to meet the growing demand for sustainable energy solutions in key regions – Africa and India – while ensuring high-quality batteries. The factory’s first line is planned to produce cells of around 6 GWh. We expect to reach up to 40 GWh when further production lines are built, and the factory reaches its full operational capacity.

Q. How will your facility manage its carbon footprint as you become an enabler in the energy transition?

As a gigafactory, Statevolt Emirates will represent a critical component of sustainable manufacturing and will significantly contribute to reducing carbon footprint across various industries in several ways:

• Efficiency: Our facility is designed to optimize production processes, leading to higher energy efficiency than traditional manufacturing facilities.
• Renewable energy: Our intention in the long term is to use clean energy sources, which minimize emissions associated with battery production.
• Scale and innovation: We will be building at a large scale, allowing for significant investments in innovative technologies. These technologies will include advanced automation and recycling systems aiming to reduce energy consumption and waste generation.
• Supply Chain optimisation: We will focus on localising the supply chain in the long run. This won’t happen from the very beginning, as the supply chain would not be ready to support that. However, by taking the time to improve it, we will reach full optimisation and be able to reduce transportation emissions.

Q. Statevolt has committed to a $3.2bn factory. Who will be investing in it?

We have a great network of investors and supporters who believe in our project and have shown significant financial commitments towards Statevolt Emirates, which we are extremely grateful for.

The majority of the overall investment is coming from institutional capital and private financing, in addition to some seed capital.

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