Stockholm-based battery maker, Northvolt, announced on Tuesday that it has signed a $1.1B (approximately €1B) convertible note to finance its production capabilities in Europe to support the ever increasing demand for batteries.
The announcement comes a year after the company raised $2.75B (approx €2.27B) in equity at an $11.75B (approximately €11.4B) valuation last June.
To date, Northvolt has raised close to $8B (approximately €7.7B) in equity and debt.
Investors
Investors who participated in Northvolt’s latest round include AMF, AP funds 1-4 through 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.
A part of the proceeds will help the Swedish company finance its expansion of battery cell and cathode material production.
Peter Carlsson, Co-Founder and CEO of Northvolt, says, “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.”
Northvolt: What you need to know
Founded in 2016 by Paolo Cerruti and Peter Carlsson, Northvolt is a European supplier of sustainable, high-quality battery cells and systems.
It offers lithium-ion cells based on proprietary Lingonberry NMC chemistry available in cylindrical and prismatic formats.
The company’s products are environment-friendly batteries manufactured with minimal carbon footprint and with recycling technology without compromising important ecosystems, enabling the auto industry to replace fossil fuels with electricity in an efficient manner.
It aims to establish a supply of sustainable battery cells and systems.
The company has secured $55B worth 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, Northvolt 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 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,” says Peter Carlsson.
Last year, the company recruited around 1,800 people, and continues to onboard around 150 people per month to support its plans.
The company is focusing on several key projects, including 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.
Goldman Sachs Bank Europe SE, J.P. Morgan AG, and Morgan Stanley & Co. International plc act as joint placement agents to Northvolt.
