US-based Statevolt has launched plans to build a 40-gigawatt-hour battery gigafactory in the United Arab Emirates, in place of its Italvolt’s gigafactory project in Italy, Kallanish reports.

The factory, to be developed by Statevolt Emirates, will be built at the Ras Al Khaiman Economic Zone (RAKEZ). The $3.2 billion project is expected to start its first production line by the end of 2026 and gradually ramp up to full capacity.

Targeting energy storage demand in Africa, India, the UAE and the Middle East, the gigafactory is planned to produce next-generation solid-state cells. However, the first cells will be semi-solid. With a modular design approach, the company is confident it can accelerate its route to market.

“Statevolt Emirates will be distributed to the investors at Italvolt, offering a unique opportunity to be part of a thriving community with no existing bureaucracy,” explains Statevolt’s founder and ceo Lars Carlstrom. “As a result of this, we have no further intentions to build any factory in Europe for now. Our activities in Italy will remain as a distributor of battery cells.”

Carlstrom, who is also the former co-founder of failed Britishvolt, said the group tried to build battery manufacturing capacity in Europe for four years but it clearly sees the future is not in Europe anymore. He told Kallanish on Friday: “the financial situation for large industrial projects have significantly changed [in Europe]; we don’t foresee this happening in the next decade.”

“The outstanding facilities provided by the emirate of Ras Al Khaimah are in perfect harmony with Statevolt’s ambitious production objectives and RAKEZ is committed to supporting the company’s journey every step of the way, ensuring all the requirements are fulfilled for the successful gigafactory project,” comments RAKEZ ceo Ramy Jallad.

Following the site agreement, Statevolt Emirates now plans to start applying for building permits.

The Statevolt Group planned to build a 45 GWh gigafactory in Italy, with production starting in 2025. It also has a 54 GWh project in Imperial Valley, California, US. The latter is scheduled to begin operations in 2025, scaling up in the following years. It is intended to use locally-sourced lithium.