By Dominic Chopping

Swiss engineering group ABB Ltd. (ABB) will partner in Northvolt's new battery factory in Sweden that seeks to take advantage of growing demand for electrified vehicles.

At a press conference in Stockholm on Tuesday, ABB said it will invest 10 million euros ($11.9 million) in the project to support the initial phase of development, around 10% of the expected EUR80 million-EUR100 million needed to fund development of a demonstration line.

As part of the project, ABB will provide robotics, automation and electrification products in the factory.

"ABB and Northvolt have signed a Memorandum of Understanding for a wide-ranging supply and technology partnership, including products and services for Northvolt's state-of-the-art lithium-ion battery factory and close collaboration on development of battery solutions and R&D activities," ABB said in a statement.

The demonstration line at the factory will be ready by 2019, and the factory is expected to start production in 2020, it said.

Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter: @domchopping @WSJNordics

(END) Dow Jones Newswires

September 26, 2017 05:38 ET (09:38 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
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