Sweden is shifting its battery industry strategy toward stationary energy storage technologies as the country develops alternatives to large-scale lithium-ion manufacturing models. RISE Research Institutes of Sweden and Vanadis Energy, the operating name of MK Plus Sweden AB, are expanding cooperation to industrialise zinc-ion batteries and vanadium-based solid-state battery technology for grid and infrastructure applications.
The initiative focuses on energy storage systems for grid stability, renewable-energy integration, industrial electrification and security of supply, rather than electric vehicle battery production. The project reflects a new phase for European battery development, with greater emphasis on technologies suited to specific industrial applications, including durability, safety and operational reliability.
RISE and Vanadis Support Industrial Battery Development
The development programme is supported by Vanadis Energy / MK Plus Sweden AB and the Swedish Energy Agency, with total project-related funding of nearly SEK 120 million. The ongoing project has a budget of SEK 70 million, with 45% co-funded by the Swedish Energy Agency and 55% financed by MK Plus Sweden AB.
Funding will support the development, scaling and industrial implementation of zinc-ion and vanadium-based solid-state battery technologies in Sweden. RISE contributes research infrastructure, industrial scale-up capabilities and commercialisation support, while Vanadis Energy provides the industrial platform in Rosersberg, Sweden.
The industrial platform was strengthened through MK Plus Sweden AB’s acquisition of Enerpoly in 2025, supporting the objective of moving beyond laboratory development toward scalable production for stationary energy storage applications.
Stationary Storage Becomes the Main Target Market
The project differs from earlier European battery investments focused primarily on automotive cells and competition with Asian lithium-ion manufacturers. Instead, the technology is aimed at stationary storage users, including grid operators, renewable-energy developers, industrial facilities and infrastructure companies requiring long service life, safety and operational stability.
Zinc-ion batteries are being developed as a safe and cost-effective storage technology for stationary applications. Zinc availability and supply characteristics provide an alternative pathway compared with several critical materials used in lithium-ion battery chemistries.
Vanadium-based solid-state batteries are being developed for applications requiring long operational life, robust performance and high safety levels in larger or more demanding environments. The combined technology approach gives Vanadis Energy two battery platforms designed for different stationary storage requirements.
European Battery Industry Adjusts After Northvolt Collapse
The project emerges as Europe reassesses its battery manufacturing strategy following the bankruptcy of Northvolt in Sweden in March 2025. Northvolt faced challenges linked to rising capital costs, geopolitical supply-chain disruption, changing market conditions and difficulties scaling production.
The development changed investment priorities across the European battery sector, increasing focus on technology selection, customer demand, manufacturing execution and capital discipline. The RISE–Vanadis initiative is positioned within this revised environment by targeting industrial applications where alternative battery chemistries may provide advantages in safety, reliability and supply-chain diversification.
Growing Demand for Grid Flexibility Supports Storage Technologies
The expansion of renewable energy generation is increasing demand for electricity-system flexibility across Europe. According to SolarPower Europe’s 2026–2030 battery market outlook, Europe installed 36 GWh of new battery energy storage systems in 2025, bringing total operational capacity above 100 GWh for the first time.
The European Commission expects electricity-system flexibility requirements in the European Union to increase as renewable energy penetration grows. The requirement is projected to reach 288 TWh, representing 24% of total EU electricity demand by 2030, and 2,189 TWh, representing 30% by 2050.
Higher solar and wind generation levels are contributing to increased power-market volatility, including periods of excess generation, negative electricity prices, grid congestion and renewable curtailment. These conditions are increasing demand for storage solutions, alongside other flexibility technologies such as hydroelectric storage and demand response systems.
Alternative Chemistries Diversify Battery Supply Chains
The development of zinc-ion and vanadium-based technologies also addresses supply-chain concerns linked to lithium-ion battery production. Lithium-ion batteries are expected to remain important across many applications, but Europe continues to face dependence on Asian battery manufacturing, cathode and anode supply chains and critical mineral processing.
Alternative chemistries based on zinc and vanadium do not eliminate supply-chain risks but provide additional technology options for stationary storage markets. For grid applications, factors including safety, operational life, domestic production capability and supply-chain resilience can be as important as energy density.
Swedish Industrial Base Supports Battery Scale-Up
Vanadis Energy is developing the project around cooperation with Swedish equipment suppliers, local raw-material suppliers and domestic technical expertise.
The initiative highlights the industrial requirements needed to establish battery manufacturing capability, including process engineering, quality control, equipment supply, testing, certification, safety systems, workforce skills and production routines.
RISE involvement provides applied research infrastructure and industrial development support, although commercial scale-up will still depend on manufacturing performance, production yields, cycle life, warranty considerations and integration with power electronics and energy-management systems.
Smaller Industrial Projects Replace Large-Scale Battery Expansion Model
The SEK 70 million industrialisation programme is significantly smaller than the multibillion-euro battery factories that dominated European investment discussions in recent years. The project structure allows staged development, technical milestones, pilot customers and manufacturing learning processes before larger-scale expansion.
Sweden continues to maintain industrial advantages through engineering expertise, renewable electricity resources, industrial suppliers, research institutions and electrification-focused policies. The RISE–Vanadis cooperation positions zinc-ion and vanadium-based solid-state batteries as specialised technologies for stationary storage markets where safety, long operational life and domestic production capability are key factors.
