Northvolt raises $2.7bn to expand gigafactory production in Sweden

by John Shepherd
CEO Peter Carlsson: 'Harnessing our knowledge and technology to start large-scale production.' Photo: Northvolt
Northvolt said today it had raised $2.75bn (£1.9bn) in equity to expand planned annual production capacity of its Swedish lithium-ion battery plant from 40 GWh to 60 GWh, in a move to meet accelerating demand for electric vehicles and boost R&D.

The company said the private placement was co-led by new investors – Swedish pension funds AP1, AP2, AP3, AP4 and Canadian pension fund OMERS – along with existing investors Goldman Sachs Asset Management, Volkswagen and other Northvolt shareholders.

The investment boost will see the company’s first gigafactory, Northvolt Ett, in Skellefteå, which is set to start production later this year, expand from the earlier plan of 40 GWh to meet increased demand from key customers – including a recent $14bn order from Volkswagen.

Northvolt co-founder and CEO Peter Carlsson said: "We have been producing cells at our cell industrialisation facility, Northvolt Labs, for more than a year and are excited to now bring the knowledge and technology we have developed to the north and start large-scale production.”

Recycling operations

Including the private placement, Northvolt has now raised more than $6.5bn in equity and debt to enable an expansion plan leading up to and beyond 150 GWh of deployed annual production capacity in Europe by 2030.

In addition, the company said it has secured in excess of $27bn worth of contracts to date. The orders book includes deals with BMW, Fluence and Scania.

Expansion plans include setting up recycling operations for 50% of all Northvolt’s raw material requirements to be sourced from recycled batteries by 2030.

Meanwhile, the company expects to build at least two more gigafactories in Europe over the coming decade, the next of which it said could be in Germany.

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