The news was announced by the Economics Ministry March 25, with a promise that a second factory for Lithium Ion Phosphate (LFP) cell technology will be established soon after. A total of €50 million will be invested and up to 300 new jobs will be created, the Ministry said.
Founded in 2016, Anodox Energy Systems makes high-capacity batteries and has worked with Volvo, NEVS, Jinpeng Auto, Geely, Lotus, Mahindra, and Pininfarina. Their R&D centre in Sweden develops electric batteries for light trucks, passenger cars, marine and other vehicles.
Theodore Zannakis, Anodox CEO said: "We are thrilled and grateful to announce our entry into Latvia and the establishment of the first LFP factory in Europe. It would not be possible without the strong support from the Latvia Government, LIAA, Altum and our customers Jinpeng Group and AKINSI Auto.”
In the first phase of this initiative, Anodox will produce high-quality battery packs for electric cars and light trucks in an automated factory. In the second, Anodox will produce high performance cells using LFP technology. LFP batteries have recently been adopted by Tesla Motors and are known to be longer lasting and produced at a lower cost than many of the electric vehicle batteries on the market today.
Kaspars Rožkalns, Director General of the Investment and Development Agency of Latvia (LIAA) hailed the annoucement saying:
“This means that the battery production cycle will be completed in Latvia, from raw material to complete system. From Rīga the finished products will be delivered to customers in Scandinavia, Germany and the rest of Europe. A truly strong demonstration of our commitment to bring Latvia to the forefront of automotive technology.”
Latvia is the starting location for Anodox to establish production facilities across Europe. According to the company's plan, Anodox Energy Systems is also considering Germany, Greece and Luxembourg as potential investment locations.