Stockholm-based lithium-ion battery producer Northvolt has raised $5 billion, marking the largest green loan in Europe. This substantial funding is earmarked for the expansion of its battery factory situated in northern Sweden, reflecting Northvolt’s plans to bolster its manufacturing capabilities.
Northvolt’s total funding, comprising equity and debt, has now surpassed $13 billion. The company aims to utilize these financial resources to enhance its operations not only in Sweden but also across key locations in Poland, Germany, the United States, and Canada.
The newly secured debt includes the refinancing of a $1.6 billion debt package that Northvolt raised in 2020. The funding comes from a consortium of 23 commercial banks, along with notable contributions from the European Investment Bank and the Nordic Investment Bank, Reuters news report said.
This financial milestone follows earlier substantial investments from major players such as BlackRock, Canadian pension plans, Goldman Sachs, Volkswagen, Baillie Gifford, Swedbank Robur, and Singapore’s GIC. Northvolt’s strategic partnerships and robust financial backing position the Swedish company as a key player in the burgeoning electric vehicle and energy storage sectors.
Northvolt’s order book stands at over $55 billion, with commitments from automakers including BMW, Scania, Volvo Cars, and the Volkswagen Group. This demand underscores the industry’s recognition of Northvolt’s lithium-ion battery technology and its role in meeting the demand for electric vehicles.
Sources previously revealed that Northvolt is gearing up for an initial public offering (IPO), with projections that the company could be valued at more than $20 billion. The successful completion of this massive green loan further solidifies Northvolt’s financial position and sets the stage for potential future developments as it continues to play a crucial role in the transition towards sustainable energy solutions.