Swedish Northvolt raises $2.75 billion in equity to expand its Gigafactory to 60GWh
Today the Stockholm-based lithium-ion battery maker Northvolt has announced closing a $2.75 billion private placement financing to further expand its production facilities as well as its R&D department in order to meet the increasing demand of companies to transition to zero net CO2 emissions. The funding was led by AP funds 1-4, OMERS, Goldman Sachs Asset Management and Volkswagen Group. AMF, ATP, Baron Capital Group, EIT InnoEnergy, Norrsken VC as well as other institutional and angle investors also participated in the round. The funding is expected to advance battery cell production capacity.
Northvolt provides electrification and renewable energy storage designed for lithium-ion battery plant to produce batteries for electric vehicles. Northvolt’s product is an environment-friendly battery manufactured with minimal carbon footprint and with recycling technology without compromising with important eco-systems, enabling the auto industry to replace fossil fuels with electricity in an efficient manner. The company aims to establish a supply of sustainable battery cells and systems.
Founded in 2016 by Paolo Cerruti and Peter Carlsson, the company has since raised more than $6.5 billion in equity and debt, planning to go beyond 150 GWh of annual production in Europe by 2030. More importantly Northvolt has already secured $27 billion worth of contracts from notable customers such as BMW, Fluence, Scania and Volkswagen. That said its crucial for them to start their recycling capabilities with 50 percent of all its raw material to be coming from recycled batteries. The firm also has plans on expanding their establishments, with the installation of two new gigafactories in Europe -possibly in Germany- in order to meet its 2030 production capacity target.
Co-founder and CEO Peter Carlsson said in a comment that “We have been producing cells at our cell industrialization facility, Northvolt Labs, for more than a year and are excited to now bring the knowledge and technology we have developed to the north and start large-scale production,”
“This is a new European industry in the making and it will require significant investments over the coming decade. It is encouraging to see that the investor community has identified the opportunity early, and we hope to see more investments throughout the value chain over the coming years,” said Alexander Hartman, CFO of Northvolt.
Source: Northvolt “Northvolt raises $2.75 billion in equity to deploy further battery cell capacity -expands Swedish gigafactory to 60GWh”