Northvolt raises further capital for Canadian factory

The Swedish battery manufacturer Northvolt has received additional capital totalling 200 million Canadian dollars, which corresponds to around 134 million euros. The money comes in the form of a convertible bond from the Caisse de dépôt et placement du Québec.

The money will be used to support the construction of the Nortvolt Six battery cell factory near Montreal in the Canadian province of Québec, which was announced at the end of September and is due to open this year. The factory is designed for an annual capacity of 60 gigawatt hours and will have neighbouring facilities for the production of active cathode material and for the recycling of batteries.

The project will be the largest private investment in the province of Québec to date. The Caisse de dépôt et placement du Québec (CDPQ) is now contributing to the financing with the aforementioned 200 million Canadian dollars. The CDPQ is an institutional investor that manages the assets of several public and semi-private pension funds, social security funds, accident insurers and property insurers in the Canadian province of Québec.

“The battery value chain is a high-interest sector for CDPQ, and with a favourable impact on the energy transition, we believe it will experience strong growth over the next decade, which we expect will benefit our depositors,” says Kim Thomassin, Executive Vice-President and Head of Québec at CDPQ. “This sector is promising for Québec’s economic development and we want to contribute to that.”

According to Paolo Cerruti, co-founder of Northvolt and CEO of Northvolt North America, the CDPQ has been involved in the process for several months. “We are delighted to partner with such a major, long-term institutional investor that is committed to Québec’s economic and energy development,” he adds

In August, Northvolt had already raised a further 1.2 billion US dollars in capital from investors to finance its further expansion in Europe and North America. That also included Canadian investors. As Northvolt announced then, the new financing round was an extension of the USD 1.1 billion convertible bonds signed in July 2022. At that time, the Volkswagen Group, AMF, AP Funds 1-4, Baillie Gifford, OMERS and Goldman Sachs Asset Management, among others, had participated.

Backers of the expansion in August included the Investment Management Corporation of Ontario, BlackRock, the Canadian pension fund CPP and long-standing financial partner OMERS, which made its third major investment in the company.



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