Swedish battery maker, Northvolt, has successfully raised $1.2 billion in funding from investors such as BlackRock and Canadian pension firms. This financing round, which took the form of a convertible note issue, brings the company's total equity and debt secured to over $9 billion. These funds will help Northvolt meet the increasing demand for sustainable battery solutions from major customers including BMW, Scania, Volvo Cars, and Volkswagen.
Significant Interest in Sustainable Battery Solutions
Northvolt's Co-Founder and CEO, Peter Carlsson, expressed gratitude for the support received from capital markets, highlighting the strong commitment to global decarbonization. He noted that these milestones place the company in an ideal position to address the significant demand for sustainable battery solutions in Europe and North America.
Notable Investors Leading the Funding Round
The latest funding round was led by BlackRock, Investment Management Corporation of Ontario, Canada Pension Plan Investment Board, and Canadian pension-plan provider Omers. It follows an extension of a $1.1 billion convertible note issued last month, which saw investments from Goldman Sachs, Baillie Gifford, Volkswagen, Singapore sovereign wealth fund GIC, and Hong Kong-based conglomerate Chow Tai Fook Enterprises.
Expanding Production and Assembly Capabilities
Currently, Northvolt designs and develops battery cells at its factories in Vasteras, Sweden, and California, USA. Battery cell manufacturing is scaling up at its plant in Skelleftea, Sweden, with ongoing projects being developed in Sweden, Germany, and Portugal. Furthermore, the company has completed the assembly of its first energy storage system products in Poland and anticipates delivering them to customers later this year.
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