Northvolt, a premium supplier of sustainable battery cells and systems, has announced raising $1.2 billion in an extension of its convertible note to finance expansion in Europe and North America. This funding builds upon a $1.1 billion convertible note signed in July 2022, making the total raised in the convertible round $2.3 billion.
The investment comes from funds labeled dark green in line with the EU's Sustainable Finance Disclosure Regulation (SFDR). Investment Management Corporation of Ontario (IMCO), BlackRock, and Canada Pension Plan Investment Board (CPP Investments) are leading the extension, with long-term financial partner OMERS also investing.
Simultaneously, Northvolt Dwa has assembled its first energy storage system (ESS) products in Gdańsk, Poland, as part of its commissioning process. The new 25,000 square meter plant assembles cells into battery systems, supported by the European Innovation Fund, targeting customers in energy storage and industrial markets. Deliveries are expected to commence later in the year.
Peter Carlsson, Co-Founder and CEO of Northvolt, expressed pride in the investors' recognition and the commitment to global decarbonization. He emphasized the company's strengthened position to meet the demand for sustainable battery solutions.
With this latest capital raise, Northvolt has now secured over $9 billion in equity and debt, enabling them to deliver on over $55 billion in orders from key customers like BMW, Fluence, Scania, Volvo Cars, and Volkswagen Group.
Alexander Hartman, CFO of Northvolt, emphasized the commitment of the investors to swift electrification and the long road ahead to reach full potential in the energy transition.
In addition to its ongoing operations in Sweden and California, US, Northvolt is ramping up manufacturing at the Northvolt Ett gigafactory in Skellefteå, Sweden, and an adjacent giga-scale recycling plant due to start later this year.
Goldman Sachs Bank Europe SE, J.P. Morgan SE, and Morgan Stanley & Co. International plc have acted as joint placement agents to Northvolt.
Source: Northvolt