Northvolt Raises $1.1 Billion To Roll Out Battery Factory In Europe

Swedish battery manufacturer Northvolt has shared signing a $1.1 billion convertible note towards financing the expansion of battery cell and cathode material production in Europe. The decision has been taken to complement the  increasing demand for batteries.

Investors that lent participation in the capital raise included AMF, AP funds 1-4, ATP, Ava Investors, Baillie Gifford, Compagnia di San Paolo through Fondaco Growth, Folksam Group, Goldman Sachs Asset Management, IMAS Foundation, Olympia Group, OMERS Capital Markets, PCS Holding, Swedbank Robur, TM Capital and Volkswagen Group.

Peter Carlsson, Co-Founder and CEO, Northvolt, said, “We will continue to work hard to deliver on the promise we have made to them to build the world’s greenest battery.”

Together with this capital, the company has secured about $8 billion in equity and debt since 2017. It looks to set up a supply of sustainable batteries to facilitate the decarbonization of society with this.

Northvolt has currently set sights on developing manufacturing capacity to supply orders worth $55 billion from important customers that entail the likes of BMW, Fluence, Scania, Volvo Cars, and Volkswagen Group. Northvolt’s aspires to build on in-house competences and presence throughout the battery value chain. Northvolt's recycling program, that has been initiated on a large scale, strives to achieve half of  its raw material requirements sourced from recycled batteries by 2030.

The CEO further added, “The combination of political decision making, customers committing even more firmly to the transition to electric vehicles, and a very rapid rise in consumer demand for cleaner products, has created a perfect storm for electrification.”

Northvolt is currently undertaking projects that include the ramp up and expansion of Northvolt Ett, as well as the establishment of the Northvolt Volvo Cars joint venture gigafactory in Gothenburg, Sweden, and its third gigafactory, Northvolt Drei, in Heide, Germany.

A cathode factory, Northvolt Fem, is being parallelly set up in Borlange, Sweden.