Northvolt secures USD 1.2bn of extra funding for growth

Swedish battery manufacturer Northvolt AB on Tuesday announced the raising of USD 1.2 billion (EUR 1.1bn) to fund its European and North American expansion plans.

The fundraising was led by the Investment Management Corporation of Ontario (IMCO), BlackRock and Canada Pension Plan Investment Board (CPP Investments), along with OMERS, which invests in the company for the third time. The round represents an extension of the USD-1.1-billion convertible note signed in July of last year.

Northvolt has so far obtained more than USD 9 billion in equity and debt as it works to build capacity to fulfill orders exceeding USD 55 billion from customers such as BMW, Fluence, Scania, Volvo Cars and the Volkswagen Group.

The company simultaneously said today that its Northvolt Dwa site in Gdansk, Poland has assembled its first energy storage system as part of its commissioning process, with customer deliveries expected to start later in 2023. Northvolt has been producing battery systems at a small-scale facility in Gdansk since 2019. Its new plant there will assemble cells into battery systems for customers in energy storage and industrial sectors.

The company is currently ramping up battery cell manufacturing at its Northvolt Ett gigafactory in Sweden and is also developing more projects in Sweden, Germany and Portugal.

Commenting on the financing, co-founder and chief executive Peter Carlsson said: “The commitment to global decarbonisation is strong, and these milestones reinforces our position to meet the massive demand for sustainable battery solutions both in Europe and North America.”

(USD 1 = EUR 0.917)

Choose your newsletter by Renewables Now. Join for free!