Stockholm-based Northvolt, a lithium-ion battery manufacturer, is in talks to raise over $5B (approximately €4.6B) in financing to cement its position as Europe’s biggest battery manufacturer, reported the Financial Times.
According to FT, Northvolt is currently in discussions with multiple banks to raise the debt financing and an agreement could be reached later this year, citing people familiar with the matter.
The announcement comes eight months after it signed a €1B convertible note to finance its production capabilities in Europe to support the ever-increasing demand for batteries.
In June 2021, Northvolt raised €2.27B in equity at €11.4B valuation.
To date, Northvolt has raised close to $8B (approximately €7.7B) in equity and debt.
Talks for IPO
Parallely, the Swedish firm is in talks with banks for an Initial Public Offering (IPO) in New York or Europe that could value the firm over $20B, reports Reuters.
The company is leaning towards Goldman Sachs Group and Morgan Stanley’s assistance to lead the stock market launch within 12 months.
The battery manufacturer is backed by a slew of investors, including AMF, AP funds 1-4, ATP, Ava Investors, Baillie Gifford, Fondaco Growth, Folksam Group, Goldman Sachs Asset Management, IMAS Foundation, Olympia Group, OMERS Capital Markets, PCS Holding, Swedbank Robur, TM Capital, and Volkswagen Group.
Northvolt: Providing eco-friendly batteries
Founded in 2016 by Paolo Cerruti and Peter Carlsson, Northvolt is a lithium-ion battery manufacturing company that focuses on providing eco-friendly batteries.
It offers lithium-ion cells based on proprietary Lingonberry NMC chemistry available in cylindrical and prismatic formats.
The company’s batteries are manufactured with a minimal carbon footprint and with recycling technology without compromising important ecosystems, enabling the auto industry to replace fossil fuels with electricity efficiently.
So far, the Swedish firm has secured $55B (approximately €51B) of orders from key customers, including BMW, Fluence, Scania, Volvo Cars, and Volkswagen Group.
To ensure a sufficient supply of raw materials for battery production, the company will produce cathode material at its Swedish site and build a recycling facility on-site to enable 50 per cent of its raw material requirements to be sourced from recycled batteries by 2030.
The company is focusing on several key projects, including the continuous ramp-up and expansion of Northvolt Ett, the establishment of the Northvolt Volvo Cars joint venture gigafactory in Gothenburg, Sweden, and its third gigafactory, Northvolt Drei, in Heide, Germany.