Northvolt raises $7.6b to expand battery gigafactory
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The news: Battery manufacturer Northvolt has raised USD5 billion ($7.6 billion) in debt financing to expand its first gigafactory in Sweden.
The numbers: The USD5 billion includes refinancing of a USD1.6 billion debt package raised in 2020, and was granted on the back of contracts with automakers including BMW, Volvo and Volkswagen. The contracts amount to USD55 billion.
The context: China manufactures the vast majority of the globe’s battery supply chain, making western countries eager to reframe the industry by offering clean-energy subsidies for compliant manufacturers.
Northvolt’s funding round is backed by a group of 23 commercial banks (including JP Morgan) as well as the European Investment Bank and the Nordic Investment Bank. The latter two are both supported by the European Commission’s InvestEU program.
Northvolt has secured over USD13 billion in equity and debt financing to date, and seeks to continue its expansion with planned factories across Europe and North America.
What they said: Peter Carlsson, co-Founder and CEO of Northvolt, said: “This financing is a milestone for the European energy transition. It will enable us to realize the full potential of Northvolt Ett and demonstrates that circular, sustainable business practices are fundamental to success in today’s industry.”
The source: Northvolt Press Release
