Northvolt raises total of $1.2bn to fund expansion plans

September 5, 2023

Northvolt has raised a total of $1.2 billion to finance plans for its further European and North American expansion.

The funding is an extension of the $1.1 billion convertible note signed in July 2022, and has attracted investment from funds labeled dark green in accordance with Article 9 of the EU’s Sustainable Finance Disclosure Regulation (SFDR). Leading the extension are the Investment Management Corporation of Ontario (IMCO), BlackRock and Canada Pension Plan Investment Board (CPP Investments), as well as long-term financial partner OMERS, which is making its third major investment in the company.

In parallel, Northvolt Dwa has assembled its first energy storage system (ESS) products in Gdańsk, Poland as part of its commissioning process. Producing battery systems at a small-scale facility located in Gdańsk since 2019, Northvolt has built a new 25,000 square meter plant that assembles cells into battery systems for customers in energy storage and industrial markets, with support from the European Innovation Fund. Customer deliveries are expected to commence later this year.

Peter Carlsson, co-founder and CEO of Northvolt, said: “I’m proud to see our continued effort being recognised by investors, as we are receiving significant interest from capital markets to support our mission. 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.”

The $2.3 billion convertible round raised to date includes investment from Goldman Sachs Asset Management, AP funds 1-4 (via the co-owned company 4 to 1 Investments), Folksam Group, ATP, Volkswagen Group, AMF, Ava Investors, IMAS Foundation, Baillie Gifford, Swedbank Robur, PCS Holding, Olympia Group, TM Capital, Compagnia di San Paolo through Fondaco Growth, East Innovate, ADQ, GIC, Chow Tai Fook Enterprises (CTFE) and J. Safra Sarasin. With this capital raise, Northvolt has now secured over $9 billion in equity and debt to deliver on over $55 billion in orders from key customers, including BMW, Fluence, Scania, Volvo Cars and Volkswagen Group.

Northvolt battery cells are currently designed and developed at Northvolt Labs in Västerås, Sweden, and Northvolt Cuberg in San Leandro, California, US. Battery cell manufacturing is ramping up at Northvolt Ett gigafactory, in Skellefteå, Sweden, while an adjacent giga-scale recycling plant, Revolt Ett, in due to start operations later this year. Additional projects are under development in Sweden, Germany and Portugal.