Cinis Fertilizers factory will be placed close to Northvolt one.
The Swedish fertilizer manufacturer states in a press release that Northvolt's communicated delays in ramping up production in Skellefteå will have consequenses. Additional costs for 2024 are estimated to be 25 million kronor for Cinis Fertilizer, and the goal of achieving an EBITDA margin of over 25 percent will not be met this year.
The planned factory in Skellefteå is postponed by two years to 2028. Instead, the company has chosen to prioritize other collaborations over its facility in Skellefteå, which, according to the company's own estimates, is expected to create around 50 jobs.
This is the second time Cinis Fertilizer has postponed its plans in Skellefteå. The facility was originally intended to start construction this year, with production set to begin in 2025.
It was in 2021 that Northvolt and Cinis Fertilizer entered into a long-term collaboration to generate fertilizer from by-products of Northvolt's battery production.
Cinis Fertilizer states in the press release that they have been forced to purchase sodium sulfate from international suppliers, which will not be used as intended due to Northvolt's delays, leading to additional costs of 25 million kronor.
The company still aims to have six facilities ready by 2030, one of which will be in Skellefteå.
Cinis Fertilizers CEO Jakob Liedberg (in the middle) at the start of construction for the company's factory in Örnsköldsvik. Here seen together with Örnsköldsvik's municipal comissioner (kommunalråd) Anna-Britta Åkerlind (C) and CEO of We Constructions Jonas Lindén.
– Building something like this takes time and new challenges always arise. Our ambition remains to, together with Northvolt and other partners, increase circularity in the battery industry and produce an environmentally friendly mineral fertilizer, says CEO Jakob Liedberg in the press release.
The company writes that all necessary permits for the Skellefteå factory are in place and that the company can "quickly start" the construction of the facility at Northvolt Ett.
Facts
Cinis Fertilizer is a Swedish greentech company that produces an environmentally friendly mineral fertilizer, potassium sulfate (SOP), by recycling by-products from the production of batteries and battery materials, the pulp industry, and other industries. The technology, which is patent-protected, will, according to the company, use half as much energy as current production methods.