Northvolt raises $1.2 billion from investors. It wants to use this money to further expand its European and North American operations.
Northvolt is a Swedish company founded in 2016 by Peter Carlsson, a former manager of EV manufacturer Tesla. The company focuses on the development of lithium-ion batteries. These batteries are not only aimed at EVs, but also a variety of other applications such as power grids and industrial applications.
Transforming lithium-ion battery production
The Swedish company says it wants to transform lithium-ion battery production. In doing so, it is betting on a combination of scale, vertical integration and automated production. Northvolt thus aims to lower the limits of battery performance, quality and cost.
Northvolt already raised $1.1 billion from investors in July 2022. Now investors are putting another $1.2 billion into the company. They include several investment companies, including Investment Management Corporation of Ontario (IMCO), BlackRock and Canada Pension Plan Investment Board (CPP Investments). Canadian pension fund OMERS is also investing in Northvolt again; it is OMERS' third investment is the Swedish party.
New sizeable plant in Gdańsk
The result of the investment round was announced at a time when Northvolt assembled its first energy storage systems in Gdańsk, Poland. The assembly took place at Northvolt's new 25,000-square-metre plant in Gdańsk. At this plant, the company assembles battery systems for customers operating in both energy storage and industrial sectors.
It received support for the construction of the plant from the European Innovation Fund. Northvolt expects to deliver the first products to customers from the plant by the end of this year.
Operating in more locations
The company has been operating in Gdańsk since 2019. It has been assembling batteries in a small-scale facility since then. It also has design and assembly centres in Västerås, Sweden (Northvolt Labs) and San Leandro in the US state of California (Northvolt Cuberg).
In addition, the company is starting production at its Northvolt Ett gigafactory in Skellefteå, Sweden. In addition to this gigafactory, the company is building an extensive recycling facility called Revolt Ett. Revolt Ett is expected to be operational later this year. Northvolt is also building new sites in Germany, Portugal as well as Sweden.
'The stakes for global decarbonisation are high'
Peter Carlsson, co-founder and CEO of Northvolt said, "I am proud that our ongoing efforts are being recognised by investors as we receive significant interest from capital markets to support our mission. The commitment to global decarbonisation is high, and these milestones strengthen our position to meet the huge demand for sustainable battery solutions, both in Europe and North America."
Alexander Hartman, CFO of Northvolt, added: "We have found a dedicated group of investors who understand both the urgent need and the huge financial potential to enable the rapid electrification of society. However, there is still a long way to go if Europe and North America are to reach their full potential as leaders in the energy transition. To create a pathway for global warming below 1.5°C, both the private and public sectors must mobilise resources on an unprecedented scale."
Author: Wouter Hoeffnagel
Photo: Northvolt Ett (source: Northvolt)
