Northvolt raises $5 billion to expand its EV battery plant

Northvolt announced $5 billion in funding for the non-recourse project to northern Sweden’s Northvold ETT battery plant for electric vehicles (EVs) and more.

Other than plant expansion, the funding will also be used for the Revolt Ett recycling plant which is under commissioning and processing its first materials.

Revolt recovers battery-grade metals with a carbon footprint 70% lower than mined raw materials to enable circular battery production.

Northvolt revealed that the new debt includes refinancing the $1.6 billion debt package raised in July 2020. It was raised because of long-term offtake contracts of over $55 billion with BMW, Scania, Volvo cars, and Volkswagen Group.

It is provided by a group of 23 commercial banks including the European Investment Bank (EIB) and Nordic Investment Bank (NIB) both of these are supported by the European Union’s investment program.

Northvolt Battery Plant

The latest $5 billion funding is raised under Northvolt’s Green Finance Framework launched in 2023. With this addition, the battery maker has raised over $13 billion in equity and debt to expand its operations in Europe and North America.

Northvolt facilities are Northvolt Ett (Skellefteå, Sweden), Northvolt Dwa (Gdansk, Poland), Northvolt Drei (Heide, Germany), Northvolt–Volvo Cars joint venture gigafactory ‘NOVO’ (Gothenburg, Sweden), Northvolt Fem (Borlänge, Sweden), Northvolt Cuberg (San Leandro, US) and the recently announced Northvolt Six (Montreal, Canada).

“This financing is a milestone for the European energy transition. It will enable us to realize the full potential of Northvolt Ett and demonstrate that circular, sustainable business practices are fundamental to success in today’s industry,” said Peter Carlsson, Co-Founder and CEO of Northvolt.

(source – Northvolt)