- Former Tesla Inc TSLA executive founded Swedish battery maker, Northvolt AB, has raised $2.75 billion in its biggest funding round to expand its operations and cater to the increasing European demand for green energy cells, Bloomberg reported.
- Swedish pension funds AP1, AP2, AP3 and AP4, Omers Capital Markets, and existing investors Goldman Sachs Asset Management and Volkswagen AG VWAGY led the round.
- The funds will be spent on existing and new facilities, R&D personnel hiring, and cell chemistries' research support.
- Volkswagen contributed $620 million to the round for maintaining a close to 20% stake in Northvolt.
- Denmark pension fund ATP added 900 million kroner ($147 million), reaching a total investment of 1.5 billion kroner.
- Northvolt targets a 25% European market share by 2030.
- Northvolt will expand annual capacity at the Skelleftea Ett factory from an earlier target of 40 GWh to 60-gigawatt hours.
- The Skelleftea plant will be Northvolt's first large-scale manufacturing facility, churning out cells by 2021 end.
- Northvolt presently has contracts worth over $27 billion with customers, including Volkswagen, Bayerische Motoren Werke AG BMWYY, and Scania.
- Northvolt plans to build at least two more battery factories in Europe over the next ten years to accomplish its 2030 target. It is considering Germany for the next plant.
- The company is in discussion with multiple German states. It is also open to partnerships for new factory projects in Europe.
- Price action: VWAGY shares traded lower by 4.2% at $36.74 in the premarket session on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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