Startup Morrow Batteries has raised €100 million ($105.9 million) in a funding round led by Siemens and ABB. It will use the money to build its first battery cell factory in Norway, its home market.

Morrow Batteries, Norwegian battery startup, has raised €100 million through a funding round led by Siemens Financial Services, the investment unit of German conglomerate Siemens, and Swiss-Swedish conglomerate ABB.

The startup said it will use the funds to build its first battery cell factory in Arendal, Norway, with an initial capacity of 1 GWh.

“When all phases of development are completed in 2028, the Morrow Gigafactory in Arendal will have an annual production capacity of 43GWh battery cells,” said Morrow Batteries.

Other investors involved in the funding round include Norway’s Nysnø Climate Investments and Arendals Fossekompani. Previous investors and current shareholders are Danish pension fund PKA, Noah AS and Agder Energi Invest.

“Growth capital is critical to building a sustainable battery value chain in Europe – a core technology driving the energy transition,” said Steffen Grosse, CEO of equity finance, Siemens Financial Services.

Edgar Keller, president of ABB’s traction division, said that the batteries will become a key component in the production of the group’s energy-efficient portfolio, which is focused on sustainable transport.