Northvolt raises further USD 1.1bn for battery capacity build

Swedish battery company Northvolt AB on Tuesday said it has signed a USD-1.1-billion (EUR 1.05bn) convertible note to back the rollout of battery cell and cathode material manufacturing in Europe.

The deal means the company has raised nearly USD 8 billion in equity and debt since 2017. It is developing battery capacity to satisfy USD 55 billion in orders from customers such as BMW, Fluence, Scania, Volvo Cars and Volkswagen Group, with plans for presence across the value chain, including cathode material production and recycling.

At the end of 2021, Northvolt’s Ett gigafactory in Skelleftea, Sweden produced its first battery cell and the company is now focused on the ramp-up and expansion of Northvolt Ett, the creation of the Northvolt Volvo Cars joint venture gigafactory in Gothenburg, Sweden, and Northvolt Drei, its third gigafactory, in Heide, Germany. A cathode factory, Northvolt Fem, is also being set up in Borlange, Sweden.

Participants in the newly announced capital raise include 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.

(USD 1 = EUR 0.956)

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