Northvolt has raised $1.1 billion to support its expansion in Europe

Northvolt announced earlier this month that it had signed a $1.1 billion convertible note to fund its expansion of production of battery cells and cathode materials for electric vehicles in Europe.

Among the investors we find once again the Volkswagen group, but the list is quite long: “AMF, AP funds 1-4 (through 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.”

With previous rounds since 2017, Northvolt has secured nearly $8 billion in equity and debt, including $2.75 billion in June 2021.

According to the company, additional capital is needed to support the expansion as demand for batteries is high. These two elements – capital and high demand – give a chance to create a completely new battery manufacturer in Europe.

Northvolt says to date it has received orders for $55 billion worth of batteries, up $5 billion from reported in May. The list of customers includes BMW, Fluence, Scania, Volvo Cars and Volkswagen Group.

Northvolt’s strategy is to be a vertically integrated battery manufacturer, starting with in-house cathode material production, battery cell production and recycling.

The production and shipment of batteries in the first factory in Sweden has already started, while new manufacturing facilities are in the works:

The other facilities are:

Mary I. Bruner