Northvolt manages to raise nearly US$5 billion, or nearly CA$7 billion, to finance the expansion of its gigafactory “Northvolt Ett” in Skellefteå, in the north of Sweden. The European company specializing in the production and recycling of battery cells made the announcement on Tuesday.
This is “the largest green loan obtained in Europe to date”, underlines Northvolt in a press release. The company’s co-founder and CEO, Peter Carlsson, says the funding will “realize Northvolt Ett’s full potential.”
More specifically, the funds will be used to increase the production capacity of this battery cell manufacturing plant, as well as to finance the expansion of the adjacent recycling plant.
The financing is provided by a group of 23 commercial banks, as well as the European Investment Bank (EIB) and the Nordic Investment Bank (NIB).
According to Financial Times, the company is currently preparing its listing on the Stockholm Stock Exchange and could go public as early as this year if it judges that the conditions are favorable. The British financial daily reports that its valuation should hover around US$20 billion, or nearly CA$27 billion – which would make it one of the largest IPOs in recent years for a European company.
Founded in 2017 by two former Tesla executives, Northvolt has several large clients including car manufacturers BMW, Volvo and Volkswagen. Its order book amounts to US$55 billion.
Where are the company’s facilities?
- Northvolt Ett (Skellefteå, Sweden)
- Northvolt Dwa (Gdansk, Poland)
- Northvolt Drei (Heide, Germany)
- Northvolt-Volvo Cars joint venture “NOVO” (Gothenburg, Sweden)
- Northvolt Fem (Borlänge, Sweden)
- Northvolt Cuberg (San Leandro, United States)
- Northvolt Six (Saint-Basile-le-Grand / McMasterville, Canada)
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