Northvolt gets cash boost to expand capacity of Swedish gigafactory to 60 GWh

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Swedish battery manufacturer Northvolt is planning to raise $2.75 billion through a private placement co-led by Swedish pension funds AP1, AP2, AP3, AP4 and Omers Capital Markets and supported by existing investors such as Goldman Sachs Asset Management and the Volkswagen Group.

The equity raise will also feature Northvolt existing shareholders such as AMF, ATP, Baillie Gifford, Baron Capital Group, Bridford Investments Limited, Compagnia di San Paolo, Cristina Stenbeck, Daniel Ek, IMAS Foundation, EIT InnoEnergy, Norrsken VC, PCS Holding, Scania, and Stena Metall Finans.

The company wants to use the funds to expand the capacity of its lithium-ion battery manufacturing site which is currently under construction in Sweden, from 40 GWh to 60 GWh.

“Including the private placement, Northvolt has now raised more than $6.5 billion 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,” the battery maker said in a statement. “In addition, Northvolt has, to date, secured in excess of $27 billion worth of contracts from key customers including BMW, Fluence, Scania and Volkswagen, to support its plan, which also includes establishing recycling capabilities to enable 50% of all its raw material requirements to be sourced from recycled batteries by 2030.”

The Northvolt Ett fab, in Skellefteå, Sweden, aims to start producing batteries this year.

In addition to the Swedish gigafactory, Volkswagen and Northvolt are planning a 50/50 joint venture to establish another, 20 GWh battery cell factory in Salzgitter in Lower Saxony, Germany. Furthermore, Northvolt is planning to build a production facility in Gdansk, in northern Poland. The start of production is planned for 2022 with an initial output of five gigawatt-hours and, at a later stage, the capacity could be raised to 12 GWh.

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