Jul 5, 2022 - 02:18 pm

Northvolt raises $1.1 billion to expand battery production in Sweden

The Swedish battery cell manufacturer Northvolt has raised US$1.1 billion in convertible bonds to expand its production of battery cells and cathode materials in Europe. The fresh capital comes from Volkswagen and a number of other investors.

In addition to Volkswagen Group, Northvolt says the other investors are AMF, AP Funds 1-4 (through the joint venture 4 to 1 Investments), 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 and TM Capital – in alphabetical order, not in the amount of their investment. Northvolt does not disclose the distribution of the $1.1 billion, or the equivalent of €1.06 billion, among investors.

With the current convertible bond issue, Northvolt has secured nearly eight billion dollars in equity and debt capital since 2018. In the same period, the company has won orders worth $55 billion (€53 billion) from customers including BMW, Fluence, Scania, Volvo Cars and the Volkswagen Group. In order to be able to supply these key customers, corresponding manufacturing capacities are currently being built up.

Since the end of 2021, Northvolt has been producing battery cells in series at the battery factory in Skellefteå called ‘Northvolt Ett’, and the cells have also been delivered since spring. Further battery factories are planned in Borlänge, Gothenburg (for Volvo’s Torslanda plant) and in Heide in Schleswig-Holstein (called Northvolt Drei). Through its large-scale recycling programme, Northvolt intends to meet 50 per cent of its raw material needs from recycled batteries by 2030.

“We are proud and thankful for the support and trust from these world-class investors and partners,” says Northvolt co-founder and CEO Peter Carlsson. “We will continue to work hard to deliver on the promise we have made to them to build the world’s greenest battery.”



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Found on electrive.com
05.07.2022 14:03