- Northvolt raised $1 billion to establish Europe's first homegrown gigafactory for lithium-ion batteries in Sweden.
- A second gigafactory is planned in Germany with Volkswagen, starting production in late 2023 or early 2024.
- The European Investment Bank approved a $400 million loan for Northvolt Ett, with production beginning in 2021.
- Northvolt Ett will expand to at least 32 GWh capacity.
Investment and Expansion Plans
Northvolt has secured a $1 billion equity capital raise to establish Europe's first homegrown gigafactory for lithium-ion battery cells, Northvolt Ett, in Skellefteå, Sweden. In collaboration with Volkswagen Group, Northvolt also plans to set up a second gigafactory in Lower Saxony, Germany.
Funding and Approvals
The equity fund raising is led by Volkswagen Group and funds managed by Goldman Sachs, with additional equity from BMW Group, AMF, Folksam Group, and IMAS Foundation. The transaction is pending approval from the Swedish Competition Authority. The European Investment Bank has approved a $400 million loan as part of the total funding for Northvolt Ett.
Production and Capacity
Construction of Northvolt Ett will begin in August, with large-scale production expected to start in 2021. The initial manufacturing capacity will be 16 GWh, with plans to expand to at least 32 GWh. The facility will handle active material preparation, cell assembly, recycling, and auxiliaries.
Joint Ventures and Future Plans
Northvolt and Volkswagen will establish a 50/50 joint venture for a 16 GWh battery cell factory in Salzgitter, Germany, with production starting in late 2023 or early 2024. Volkswagen is investing around $1 billion in joint battery activities with Northvolt, with potential expansion to 24 GWh.
Market Demand and Orders
Driven by the industrial shift towards electrification, Europe has seen a significant increase in demand for domestic cell capacity. Northvolt Ett has secured supply agreements amounting to over $13 billion in order value through 2030.
