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Swedish firm Northvolt raises $2.75B to speed up European battery manufacturing

Swedish battery developer and producer Northvolt AB has raised $2.75 billion in capital because it prepares to ramp as much as an annual manufacturing capability of 150 GWh in Europe by 2030.

The funding spherical — Northvolt’s largest to this point — was co-led by current buyers Goldman Sachs and Volkswagen, and new buyers together with the Swedish pension funds AP1-4 and OMERS, one in every of Canada’s largest pension plans. AMF, ATP, Baillie Gifford, Baron Capital Group, Bridford Investments Restricted, Compagnia di San Paolo by Fondaco Development, Cristina Stenbeck, Daniel Ek, IMAS Basis, EIT InnoEnergy, Norrsken VC, PCS Holding, Scania and Stena Metall Finans additionally participated within the increase.

Volkswagen’s funding got here to €500 million ($620 million), the OEM mentioned Wednesday, sustaining its 20% stake within the battery producer.

CNBC reported that Northvolt’s valuation now stands at $11.75 billion. The corporate declined to touch upon the particular valuation determine to TechCrunch.

Northvolt has already scored main offers with automakers like Volkswagen and BMW. In July 2020, the corporate inked a $2.3 billion contract with BMW for batteries; extra lately, in March, Volkswagen put in a $14 billion order over a 10-year interval. The 2 offers deliver Northvolt’s whole contracts to $27 billion. Different notable prospects embrace Swedish heavy-duty truck producer Scania and power storage firm Fluence.

Swedish battery producer Northvolt receives a $14 billion order from VW

This brings Northvolt’s whole raised to greater than $6.5 billion because the firm was based in 2016. The producer’s first gigafactory in Skellefteå, Sweden, will likely be expanded from 40 GWh to 60 GWh, partly attributable to elevated demand from the Volkswagen order, the corporate mentioned in a press release. That facility will begin manufacturing later in 2021.

Northvolt’s overarching plan is to ramp as much as no less than 150 GWh of annual battery manufacturing throughout Europe by 2030. To satisfy this large goal, the corporate is contemplating no less than two further gigafactories, together with one in Germany.

Northvolt is one in every of Europe’s largest battery producers. Firm shareholder EIT InnoEnergy mentioned in a press release Wednesday that the funding is essential to Europe attaining its Inexperienced Deal targets, which incorporates making a European battery worth chain.

The Swedish firm goals to differentiate itself from different battery producers by producing batteries utilizing renewable power for the manufacturing course of. Northvolt says its batteries have an 80% decrease carbon footprint than these made with coal energy. It additionally recycles batteries in-house and reuses the uncooked supplies in its manufacturing course of.

Giving EV batteries a second life for sustainability and revenue