With 5,000 employees across Europe, Canada and the US, the start-up founded by former Tesla execs counts among its clients BMW, Volvo and Volkswagen.
Northvolt, a battery manufacturing start-up based in Stockholm, has raised $5bn in debt financing to majorly expand its factory in northern Sweden.
One of the largest green loans ever raised in Europe, the deal will expand cathode production and cell manufacturing following an expansion of the Northvolt Ett factory. Funding will also be used to expand the adjacent nearly commissioned Revolt Ett recycling plant.
Having raised mammoth rounds of funding in the past, the latest financing package was raised from a group of commercial banks and brings total amount raised to more than $13bn in equity and debt for expansions in Europe and North America.
Other than the gigafactory Northvolt Ett in Skellefteå, the other facilities that have benefitted from expansions in the past include Northvolt Dwa in Poland, Northvolt Drei in Germany, Northvolt Cuberg in the US and Northvolt Six in Canada.
Founded in 2016 by former Tesla executives Peter Carlsson and Paolo Cerutti, the Swedish start-up is developing a sustainable model for battery manufacturing. Some of its major clients include BMW, Fluence, Scania, Volvo Cars and Volkswagen Group.
Together, Northvolt claims, the clients have issued $55bn in orders to date. The company has around 5,000 employees across Sweden, Germany, Norway, Poland, Portugal, Canada and the US.
Announcing the signing of a $5 billion project financing to enable the expansion of Northvolt Ett gigafactory in northern Sweden, and its adjacent recycling plant, Revolt Ett — the largest green loan raised in Europe to date. Full press release ↓https://t.co/fKSiKYEVwX
— Northvolt (@northvolt) January 16, 2024
Alexander Hartman, chief financial officer of Northvolt, said that the latest deal marks one of the “largest green financing deals in history”.
“This has been an incredible team effort, involving long due diligence processes, new partnerships with strong institutions and developing cutting edge financing structures focused on sustainability,” he said.
“I’m proud to see how our ambition to mass produce the world’s greenest battery attracts top-tier financial partners, as global capital is looking to invest in electrification and climate change mitigation,” added Northvolt chief environmental officer Emma Nehrenheim.
“It has become obvious that the creation of a new industry standard not only attracts world-leading talent, but also major financial institutions that aim to align their strategy with long-term macro trends.”
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