- Northvolt raised $2.75 billion to expand battery cell production and R&D.
- The Skellefteå gigafactory will increase capacity from 40 GWh to 60 GWh.
- Northvolt has secured over $27 billion in contracts from key customers.
- Two more gigafactories are planned in Europe by 2030, with Germany as a potential site.
Investment and Expansion
Northvolt has secured a $2.75 billion private placement to enhance its battery cell production capacity and R&D efforts. This funding round was co-led by new investors AP funds 1-4 and OMERS, alongside existing investors such as Goldman Sachs Asset Management and Volkswagen Group. With this latest investment, Northvolt has raised over $6.5 billion in equity and debt to support its expansion plans, aiming for 150 GWh of annual production capacity in Europe by 2030.
Key Contracts and Recycling Goals
Northvolt has secured more than $27 billion in contracts from major customers, including BMW, Fluence, Scania, and Volkswagen. The company also plans to establish recycling capabilities to source 50% of its raw material requirements from recycled batteries by 2030.
Gigafactory Expansion
The Northvolt Ett gigafactory in Skellefteå, Sweden, will expand its annual production capacity from 40 GWh to 60 GWh to meet increased demand, including a $14 billion order from Volkswagen. Production at the factory is set to commence later this year.
Future Plans
To meet its 2030 capacity target, Northvolt plans to build at least two more gigafactories in Europe, with Germany being a potential location. The company anticipates significant growth in the European battery manufacturing value chain, from raw material processing to recycling infrastructure.
Financial Advisors
Goldman Sachs Bank Europe SE and Morgan Stanley & Co. International plc are acting as financial advisors to Northvolt.
