Lithium-ion battery manufacturer Northvolt has raised $2.75bn to put towards expanding its operations in Skellefteå, Sweden, in what was a promising win for the batteries industry.
The rising demand for electric vehicles (EV’s) was highlighted as a key driver of this equity fund-raising, and the company has issued a statement saying the money will be funnelled into increased capacity at the site from 40 gigawatt hours (GWh) to 60GWh – enough to supply batteries for around 1 million EV’s. Operations at the facility in northern Sweden are anticipated to start later this year.
“We have a solid base of world-class investors and customers on-board who share Northvolt’s mission of building the world’s greenest battery to enable the European transition to renewable energy,” said Peter Carlsson, Northvolt CEO and co-founder. “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.”
Northvolt has also previously voiced its ambition to deliver at least 150GWh of annual production capacity throughout Europe by 2030. The company has already secured contracts with BMW and Volkswagen, as well as truck manufacturer Scania and energy storage company Fluence for their EV battery needs. Additional gigafactories are on the cards to help Northvolt meet its ambitious goals, with at least one potential site in Germany.
The company also has the goal of sourcing 50% of all its raw material requirements from recycled batteries by 2030 – further serving its mission of creating the ‘world’s greenest batteries’.
The latest financing round – Northvolt’s largest to date – has raised the company’s total investment to now stand at $6.5bn. The firm has already attracted some big names, with investors including Goldman Sachs and Volkswagen, as well as Canadian pension provider OMERS Capital Markets. Volkswagen’s investment reportedly came to $620 million, representing a 20% stake in the battery manufacturer.