Battery innovator Northvolt has issued a $1.1-billion convertible note to finance its expansion of battery cell and cathode material production in Europe. Investors participating in the capital raise included the Volkswagen Group, along with a raft of global financial institutions. This capital raise brings the amount Northvolt has secured since 2017 close to $8 billion.
“We are proud and thankful for the support and trust from these world-class investors and partners,” said co-founder and CEO Peter Carlsson. “We will continue to work hard to deliver on the promise we have made to them to build the world’s greenest battery.”
The company says it is currently developing manufacturing capacity to deliver on $55 billion worth of orders from customers including BMW, Fluence, Scania, Volvo Cars and the Volkswagen Group.
Northvolt produced its first battery cell at the Northvolt Ett gigafactory in Skellefteå, Sweden in late 2021, and made the first commercial deliveries from the factory during the spring of 2022. The company continues to ramp up production at Northvolt Ett, and has established two more facilities: a Northvolt/Volvo Cars joint venture gigafactory in Gothenburg, Sweden, and its third gigafactory, Northvolt Drei, in Heide, Germany. The company is in the process of establishing a cathode factory, Northvolt Fem, in Borlänge, Sweden.
“The combination of political decision-making, customers committing even more firmly to the transition to electric vehicles, and a very rapid rise in consumer demand for cleaner products, has created a perfect storm for electrification,” said Peter Carlsson.