Skeleton Technologies, an energy storage technology firm from Estonia, is set to build a new factory near Leipzig, Germany, which Siemens has designed for supercapacitors, Reuters reported.

In a similar way to batteries, supercapacitors store and release energy, but at a smaller quality and much faster rate.

In order to make its supercapacitors, Skeleton Technologies uses aluminum and a carbon-based material it produces in Estonia.

A factory in Markranstaedt, which will be Europe’s largest, will produce 12 million cells a year, 8 million of which will be for passenger vehicles and 4 million for heavy-duty transportation and energy grids.

A total of EUR 220 million ($223.39 million) will be invested in the factory by Skeleton.

As of now, the company produces around 300,000 cells a year at a smaller facility near Dresden. It primarily serves clients in heavy-duty transport or grid management, such as SkodaElectric or ZPUE.

As part of the agreements, the company has signed contracts with German car manufacturers and letters of intent with Japanese manufacturers. A spokesperson declined to name the companies.

Production is set to begin in 2024.