Northvolt raises $1.1 billion
Swedish battery developer and manufacturer Northvolt announced the signing of a $1.1 billion convertible note. Investors participating in the capital raise were AMF, AP funds 1-4 (via the co-owned company 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, TM Capital and Volkswagen Group.
“We are proud and thankful for the support and trust from these world-class investors and partners. We will continue to work hard to deliver on the promise we have made to them to build the world’s greenest battery. The combination of political decision making, customers committing even more firmly to the transition to electric vehicles, and a very rapid rise in consumer demand for cleaner products, has created a perfect storm for electrification.” – Peter Carlsson, Co-Founder and CEO of Northvolt.
Founded in 2017, Northvolt has secured close to $8 billion in equity and debt to deliver on its plans to establish a supply of sustainable batteries to enable the decarbonization of society. Presently, the company is developing manufacturing capacity to deliver on $55 billion in orders from customers, including BMW, Fluence, Scania, Volvo Cars, and Volkswagen Group.
Northvolt produced its first battery cell at the Northvolt Ett gigafactory in Skellefteå, Sweden, just before New Year’s Eve 2021, and made the first commercial deliveries from the factory during the spring of 2022. Through 2021, around 1,800 people were recruited into Northvolt, and it continues to onboard around 150 people per month to support its plans. Key projects of the company include the continuous ramp up and expansion of Northvolt Ett, as well as the establishment of the Northvolt Volvo Cars joint venture gigafactory in Gothenburg, Sweden, and its third gigafactory, Northvolt Drei, in Heide, Germany. In parallel, a cathode factory, Northvolt Fem, is being established in Borlänge, Sweden.
