On June 9, Northvolt announced a private placement of $2.75 billion to further invest in cell capacity and research and development to meet the growing needs of consumers who want to transition to decarbonization and electric solutions.
The private equity is led by new investor AP funds 1-4, OMERS, one of Canada's largest fixed-income pension plans, and existing investors Goldman Sachs Asset Management and Volkswagen Group.
Now, Northvolt has raised more than $6.5 billion in equity and debt to support its capacity expansion plans. The plan includes the establishment of a recycling mechanism for European batteries with an annual production capacity of 150 GWh, or more by 2030, so that 50 per cent of its raw materials come from second-hand batteries.
In addition, Northvolt has so far secured more than $27 billion worth of contract orders from key customers, including BMW, Fluence, Scania and Volkswagen, to support the company's plans. Peter Carlsson, co-founder and CEO of Northvolt, said: "We have world-class investors and customers, which lays a solid foundation for our business. We all share the mission of Northvolt to build the most environmentally friendly batteries in the world to transform Europe into renewable energy. "
To meet the growing demand of key customers, including the $14 billion order announced by Volkswagen earlier this year,), Northvolt's first superfactory, Northvolt Ett, will expand its annual capacity to 60 GWh from the previously planned 40 GWh. The plant, located in Sherefteo, Sweden, will start production later this year. Peter Carlsson said: "We have been producing cells in our battery factory Northvolt Labs for more than a year, and now we are happy to bring the knowledge and technology we already have to the north and achieve mass production."
To meet its 2030 capacity target, Northvolt expects to build at least two new superfactories in Europe over the next decade and is actively looking for the next one in Germany. Northvolt expects significant growth in other parts of the European battery production value chain over the same period, from the processing of raw materials into components and production equipment, to the production of batteries, systems and the construction of recycling infrastructure.
Alexander Hartman, chief financial officer of Northvolt, said: "this is an emerging manufacturing industry in Europe and will require a lot of investment over the next decade. It is encouraging that the investment community has identified opportunities early and we hope to see more investment throughout the value chain in the coming years. " Goldman Sachs Europe and Morgan Stanley are financial advisers to Northvolt.
