© northvolt Electronics Production | July 29, 2020
Battery manufacturer raises $1.6 billion in debt financing
Swedish battery manufacturer, Northvolt, has signed a USD 1.6 billion debt raise provided by a consortium of commercial banks, pension funds and public financial institutions, increasing the total amount of capital raised to date to over USD 3 billion.
“The momentum for electrification is stronger than ever. Our customers need large volumes of high-quality batteries with a low CO2 footprint, and Europe must build a fully regionalized value chain to support them,” says Peter Carlsson, co-founder and CEO, Northvolt, in a press release. Including the USD 1.6 billion debt raise, Northvolt has to date raised over USD 3 billion in equity and debt to support the development of two gigafactories for lithium ion battery cell production: Northvolt Ett in Skellefteå, Sweden, and Northvolt Zwei in Salzgitter, Germany. The company is also making significant investments in battery cell technology, process development and recycling at the recently established industrialization factory, Northvolt Labs, in Västerås, Sweden, which produced its first battery cells in late 2019. Since launching in March 2017 Northvolt has grown to more than 700 employees at its facilities in Sweden, Germany and Poland. Northvolt targets a 25% market share in Europe by 2030, equaling approximately 150 GWh of commissioned annual production capacity. At this same time, Northvolt aims to secure 50% of its raw material requirements from recycled batteries. The recycling target will be achieved through establishing a full-scale recycling facility at Northvolt Ett.