Norway’s Nel ASA Plans to Build Gigafactory in Plymouth Township

Norwegian electrode manufacturer Nel ASA has selected Plymouth Township as the site of its next gigafactory that will be among the world’s largest electrode plants.
225
Scientist working
Nel ASA is planning to build a large plant in Plymouth Township to build electrodes to support its PEM electrolyzer technology, which it is developing for automotive use with GM fuel cells, pictured. // Photo courtesy of Nel ASA

Norwegian electrode manufacturer Nel ASA has selected Plymouth Township as the site of its next gigafactory that will be among the world’s largest electrode plants.

The new facility, the construction and startup timeline for which has not been released, will build on Nel’s fully automated electrolyser concept, which the company has developed at its production facility in Herøya, Norway.

The company says the gigafactory will be built in steps to match supply with demand. A final investment decision for constructing this facility has not been made yet.

“Plymouth Charter Township is an ideal location for Nel,” says Håkon Volldal, CEO of Nel. “Here, we have access to a highly educated workforce, universities, and research institutions, and we are close to our collaborating partner, General Motors.”

Last November, Nel Hydrogen U.S., a subsidiary of Nel ASA, entered into a joint development agreement with General Motors to help accelerate the industrialization of Nel’s proton exchange membrane (PEM) electrolyzer platform.

A PEM electrolyzer and a fuel cell are largely based on the same principles. A PEM electrolyzer uses electricity and water to produce hydrogen and oxygen, while a fuel cell reverses the process, using hydrogen and oxygen to produce electricity and water. Nel’s partnership with GM will combine the automaker’s expertise with fuel cells with Nel’s PEM electrolyzer technology to enable more cost competitive sources of renewable hydrogen.

The Michigan Strategic Fund (MSF) is supporting the project with a $10 million Michigan Business Development grant. The MSF board also approved a 15-year, 100 percent State Essential Services Assessment (SESA) Exemption Request, valued at up to $6.25 million to support the project.

Nel has so far secured more than $50 million in support for its Michigan site. Pending approval of additional state and federal applications, this amount could increase to around $150 million.

“The government and the authorities of Michigan have provided a very attractive financial support package for us,” Volldal says.