Northvolt raises capital for lithium-ion gigafactories

Volkswagen Group and Goldman Sachs are leading a $1bn investment in Northvolt, alongside BMW Group, AMF, Folksam Group and IMAS Foundation.

The investment will enable the establishment of the initial 16GWh of lithium-ion battery cell manufacturing capacity ‘gigafactory’ in Sweden, with construction to commence in August. The European Investment Bank has approved in-principle a $400m loan as a part of the total funding for Northvolt.

Northvolt has already gained supply agreements for a significant share of the production volumes, amounting to a combined order value of over $13bn through to 2030.

A joint venture between the Volkswagen Group and Northvolt will also be set up to establish a 16GWh battery cell gigafactory in Germany.

“Today is not only a great milestone for Northvolt, it also marks a key moment for Europe that clearly shows that we are ready to compete in the coming wave of electrification and that we will do so using battery cells which carry the lowest CO2 footprint possible,” said Peter Carlsson, co-founder and CEO of Northvolt.

Founded in 2016 to enable the European transition to a decarbonised future, the company aims to deliver the world’s greenest lithium-ion battery with a minimal CO2 footprint and high levels of recycling. Among Northvolt's industrial partners and customers are ABB, BMW Group, Scania, Siemens, Vattenfall, Vestas and the Volkswagen Group.

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