SFA close to winning battery equipment order from Northvolt

SFA was in the final stages of talks with Northvolt to supply battery production equipment, TheElec has learned.

The pair was in the stage of discussing unit prices and wrapping up the talks, sources said.

SFA became the preferred candidate for the equipment for back-end and logistics processes over rival Wonik PNE, which had also been eyeing the deal.

However, China’s Lead Intelligent is also making an effort to win the deal and had offered better terms to Northvolt compared to SFA, the sources said.

The Chinese company has a history of supplying the European battery maker with equipment.

But Northvolt was unsatisfied with their quality and productivity and had made contacts with South Korean equipment makers to pitch their kits as well.

Still, Lead Intelligent could win back the deal if its terms are substantially better than those offered by SFA, the sources said.

Despite being somewhat behind in sophistication in terms of technology, the equipment made by Chinese battery equipment makers is improving every year, they said.

South Korean SK On is using China-made equipment at its factory in Hungary due to their good price and quality.