Northvolt, a Swedish manufacturer of lithium-ion batteries for EVs, has raised $1.2 billion in fresh funding that it will use to build new factories in North America and Europe.
The funding secured through convertible notes has been led by the world’s largest asset manager, BlackRock. It also includes investments from Canada Pension Plan, Ontario Municipal Employees Retirement System, and pension investor Investment Management Corporation. Volkswagen also participated in the latest funding round as did Goldman Sachs, Baillie Gifford, Swedbank Robur, Singapore’s GIC, and Chow Tai Fook Enterprises from Hong Kong.
Speaking with Reuters, Northvolt chief financial officer Alexander Hartman said the funding would help it grow its factory footprint. It recently committed €600 million ($654 million) to build a new battery factory in Germany and is also reportedly on the verge of inking a deal to build a multibillion-dollar battery plant in Canada.
Read: BMW Signs A $2.3 Billion Battery Deal With Sweden’s Northvolt
“The battery manufacturing sector has attractive growth potential driven by the accelerating adoption of battery storage and electric vehicles,” added global head of climate infrastructure at BlackRock, David Giordano. “As a leading investor in the energy transition, we look forward to supporting their continued growth.”
Northvolt has secured orders worth in excess of $55 billion for its batteries. Among its most significant customers include BMW, Volvo Cars, Volkswagen, Scania, and Fluence, an electric services company. The Swedish brand has raised more than $9 billion in debt and equity since 2017, including $1.1 billion that it raised last year in convertible notes.
In April, Northvolt unveiled a new lithium-ion prismatic cell that it will supply to Scania for use in heavy-duty electric trucks. These new cells are being produced at Northvolt’s factory in northern Sweden using electricity generated by hydroelectric and wind power. The company says these cells can last 1.5 million kilometers (932,000 miles), matching the average lifecycle of a combustion-powered heavy-duty truck.
