Italvolt signs one million square meters land purchasing agreement

Italvolt Spa, founded by Lars Carlstrom to create one of the largest
gigafactories in Europe, has signed an agreement with Prelios Sgr, manager
of Fondo Monteverdi, for the purchase of an area of one million square
meters. The purchased land is located in the municipality of Scarmagno,
which is in Italy’s second largest region of Piedmont, where the former
Olivetti factory stood.

Italvolt’s gigafactory, which once fully operational, is destined to become
one of Europe’s largest production and storage sites of lithium batteries
for electric vehicles, with a planned capacity of 45 GWh. This represents
one of the most important and largest industrial investment projects in
Italy in modern times, involving an overall investment of around 3.4 billion
euros.

The site in Scarmagno has been selected for its existing infrastructure and
strategic geographical location in terms of good road and rail connections.
The site will be able to leverage Piedmont’s productive capability, the
leading region in Italy for automotive industrial production. The land will
be reclaimed and repurposed by Italvolt, dedicating an area of 300 thousand
square meters to constructing the new plant. Out of this, 20 thousand square
meters will be dedicated to creating a Research & Development centre.

The next step for Italvolt is obtaining building permits by the beginning of
2022 so work can begin in the second half of the year. Pininfarina’s
Architecture Division will design the new plant with a strong focus on
environmental and social impact. Pininfarina intends to develop a new
generation industrial plant integrated into the economic and social fabric
of the region.

Lars Carlstrom, CEO and Founder of Italvolt stated: “The agreement with
Prelios Sgr represents a crucial step in the implementation plan of our
gigafactory project. We are delighted to have concluded the purchase of the
land with input from local authorities. In recent months they have made a
significant contribution to the promotion of Italvolt’s project. The
decommissioned site offers excellent potential to restore the local
industrial heritage, offering jobs and environmental improvements”.

In the first half of 2021, the electric mobility industry saw a significant
increase in growth, not only in Europe but globally. In Italy, for instance,
in the first six months of 2021, registrations of electric and plug-in
hybrid cars quadrupled, compared to the same period last year. As a result,
the demand for lithium-ion batteries in Europe is expected to grow at a rate
of 24% per year, driven by electric mobility exceeding 1,200 GWh in 2035.

Lars Carlstrom added: “We are proud to be the promoters of a project that
will become one of the largest gigafactories in Southern Europe. We are
certain that this will pave the way for new industrial initiatives dedicated
to battery production. To achieve the challenging goal, set by the European
Commission, to complete the transition towards a zero-emission automotive
industry by 2035, it is necessary to accelerate battery production, and
Italvolt is ready to do its part”.

Patrick Del Bigio, CEO of Prelios Sgr, commented: “We are very pleased with
the result achieved. The area that hosted the historic Olivetti will come
back to life in the following months with a new industrial project focused
on the business of electric mobility, which today presents itself as a
highly strategic and innovative sector, just as Olivetti was in the 1960s in
the IT sector. Therefore, the industrial heritage of the site remains intact
with important socio-economic developments that will derive from the focus
on green industrialization. With this focus, Prelios SGR has also been
particularly committed and has contributed to the operation’s success,
working in close coordination with representatives of the public
administration and all the other actors involved, as well as defining the
best value of the real estate asset”.

Andrea Tronzano, Councillor for the Budget of the Piedmont Region, said:
“This is a moment of great excitement for Piedmont. This step is
extraordinarily important for the Canavese area and beyond and demonstrates
Italvolt’s willingness to build the battery factory on schedule. Piedmont
wants a gigafactory, and this news can only give us great pleasure. Now we
will support the business plans through helping government access the
resources of Pnrr”.

Certain administrative matters associated with the agreement are expected to
be met within 12 months from the signing.

On legal matters, Italvolt was assisted by Dentons, with a team led by
Managing Partner Federico Sutti and composed of Partner Federico Vanetti and
Associates Lorenzo Ugolini and Cristina Garlaschelli. GDP assisted Prelios
Sgr – Studio Legale e Tributario with a team led by Founding Partner Prof.
Andrea Gemma, with Partner Elisabetta Mattozzi and Managing Associate Chiara
Adele Pero.