Northvolt Raises $600 Million For Giant Recycling Factory

Northvolt Ett

writer icon Tormod Birch     Northvolt   |   Sustainability     🕐 12. Oct. 2020

Northvolt has announced the signing of a $600 million private investment.

Lithium-ion battery Since 2016
The European supplier of sustainable, high-quality battery cells and systems was founded in 2016 to enable the European transition to a decarbonised future.

Northvolt made swift progress on its mission to deliver the world’s greenest lithium-ion battery with a minimal CO2 footprint.

The company has, over the last four years, grown to more than 800 people of over 70 different nationalities, and now has facilities in Sweden, Germany and Poland.

The Investment
The Investment was led by Baillie Gifford, Goldman Sachs Merchant Banking Division and Volkswagen AG, enabling Northvolt to further invest in expanding its production and recycling capacity.

Private investors Cristina Stenbeck and Daniel Ek also participate in the equity raise together with existing Northvolt shareholders Goldman Sachs Merchant Banking Division, IMAS Foundation, Scania and Volkswagen AG.

“We are in the middle of a race to establish manufacturing capacity in Europe, and I believe the companies that are best at attracting talent and capital, while scaling their blueprints the fastest, will be the most successful," said Peter Carlsson, co-founder and CEO of Northvolt.

"With these world-class partners behind us, we have created a solid foundation to go on and execute our plans to enable large-scale manufacturing of green batteries in Europe,” Carlsson added.

The $600 million investment will enable Northvolt to make further investments in production capacity, building a massive recycling factory, and expanding the Northvolt existing Labs Campus.

Increasing production capacity of battery cells and systems to support the goal of establishing 150 GWh of manufacturing output in Europe by 2030.

Expanding the Northvolt Labs Campus, where the company's R&D activities take place. Northvolt Labs is expected to double in size over the coming years in terms of investment and footprint.

Establishing a giga-scale lithium-ion battery recycling facility next to the Northvolt Ett gigafactory. The facility will become the largest in the world with an initial capacity of 4 GWh, and the only large-scale facility in Europe capable of recycling lithium in addition to cobalt, nickel, manganese and other metals.

The Northvolt Ett gigafactory in Skellefteå, Sweden, with a potential annual output of 40 GWh, is under construction and scheduled for start of production in 2021.

In parallel, the permitting process is underway for Northvolt Zwei in Salzgitter, Germany, which is scheduled to commence operations in 2024 with an initial output of 16 GWh.

Collectively, these initiatives will facilitate Northvolt's target of a 25 percent market share in Europe by 2030, equaling approximately 150 GWh of commissioned annual production capacity, with 50 percent of its raw material coming from recycled batteries.

Goldman Sachs International and Morgan Stanley and Co. International PLC act as financial advisors to Northvolt.

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