Northvolt raises another 5 billion dollars
SKELLEFTEÅ Battery manufacturer Northvolt raises another USD 5 billion. It is the company’s largest financing to date. The money will be used for the investment in the battery factory in Skellefteå in Sweden and the battery recycling factory next door, Revolt One.
Unlike previous convertible loans, this time it is a non-recourse loan, secured by a pledge of the factory in Skellefteå.
The financiers are 23 commercial banks, the European Investment Bank (EIB) and the Nordic Investment Bank (NIB), who are both supported by the European Commission’s InvestEU programme. Guarantors for the financing are the Swedish National Debt Office together with international giants such as Euler Hermes, Korean export-import bank KEXIM, Nippon Export and Investment Insurance, NEXI, and Korea Trade Insurance Corporation, K-sure.
According to Northvolt, it is the largest green debt financing deal to date in Europe.
“This financing is a milestone for the European energy transition. It will enable us to realize the full potential of Northvolt Ett and demonstrates that circular, sustainable business practices are fundamental to success in today’s industry,” says Peter Carlsson, Co-Founder and CEO of Northvolt.
This financing package means that Northvolt has now secured more than USD 13 billion in equity and debt to enable its expansion in Europe and North America, with the facilities Northvolt Ett (Skellefteå, Sweden), Northvolt Dwa (Gdansk, Poland), Northvolt Drei (Heide, Germany), Northvolt–Volvo Cars joint venture gigafactory ‘NOVO’ (Gothenburg, Sweden), Northvolt Fem (Borlänge, Sweden), Northvolt Cuberg (San Leandro, US) and the recently announced Northvolt Six (Montreal, Canada).
The investment in Skellefteå is estimated to total SEK 70-80 billion (about USD 7 billion).
Lennart Håkansson
