Northvolt raises $5 billion to expand its battery network
Swedish battery manufacturer Northvolt has just signed the largest green loan raised in Europe to date, which will facilitate the expansion of Europe's first homegrown gigafactory, Northvolt Ett, and also the realisation of Northvolt's plans for battery recycling.
Northvolt has signed a USD 5 billion non-recourse project financing to expand its Northvolt Ett gigafactory in northern Sweden. In addition to the expansion of Northvolt Ett’s cathode production and cell manufacturing, the finance package will enable the expansion of the adjacent recycling plant, Revolt Ett, which is approaching the conclusion of its commissioning and is processing its first materials.
The company says that Revolt Ett recovers battery-grade metals with a carbon footprint 70% lower than mined raw materials, thereby enabling a fully integrated, circular battery production setup – which has not previously existed outside of Asia.
“This financing is a milestone for the European energy transition. It will enable us to realize the full potential of Northvolt Ett and demonstrates that circular, sustainable business practices are fundamental to success in today’s industry,” says Peter Carlsson, Co-Founder and CEO of Northvolt, in a press release.
The new debt includes refinancing of the USD 1.6 billion debt package raised back in July 2020, and has been raised on the back of long-term contracts amounting to over USD 55 billion with companies such as BMW, Scania, Volvo Cars and Volkswagen Group.
The loan is provided by a group of 23 commercial banks, as well as the European Investment Bank (EIB) and the Nordic Investment Bank (NIB), who are both supported by the European Commission’s InvestEU programme.