Goldman, Volkswagen backed Northvolt Raises $1.1B For Expansion In Europe

Northvolt, the battery maker back by Volkswagen and Goldman Sachs, raised $1.1 billion via convertible note to finance its expansion of battery cell and cathode material production in Europe to support the rapidly expanding demand for batteries.

Among the investors in the capital offering were Goldman Sachs Asset Management and Volkswagen Group VWAGY.

Since 2017, Northvolt has raised about $8 billion in equity and debt to fund its operations. It is now building a manufacturing capacity to fulfill $55 billion in orders from key customers, including BMW, Fluence, Scania, Volvo Cars, and Volkswagen Group. 

Northvolt intends to enable 50% of its raw material requirements to be sourced from recycled batteries by 2030.

“The combination of political decision making, customers committing even more firmly to the transition to electric vehicles, and a very rapid rise in consumer demand for cleaner products has created a perfect storm for electrification,” commented Peter Carlsson, Co-Founder, and CEO.

Key projects of the company include the continuous ramp-up and expansion of Northvolt Ett and the establishment of the Northvolt Volvo Cars joint venture gigafactory in Gothenburg, Sweden, and its third gigafactory, Northvolt Drei, in Heide, Germany. In parallel, a cathode factory, Northvolt Fem, is being established in Borlänge, Sweden.

Photo via Wikimedia Commons