Northvolt raises $1.6bn in financing for lithium-ion battery plant in Sweden

WCN Editorial Team 30 Jul 2020 EUROPE BUILDINGS

Northvolt, a Swedish battery developer, has raised $1.6bn in debt to finance the ongoing construction of its large-scale lithium-ion battery manufacturing plant in Skellefteå, Sweden.

The debt was provided by a consortium of banks, pension funds and public financial institutions including APG, BNP Paribas, Danske Bank, Danica Pension, IMI – Intesa Sanpaolo, ING, KfW IPEX-Bank, PFA Pension, SEB, Siemens Bank, SMBC, SociétéGénérale, Swedbank and UniCredit, the European Investment Bank (EIB), the Nordic Investment Bank (NIB) and the Export-Import Bank of Korea (KEXIM).

With the latest financing, the company has till now raised more than $3bn in equity and debt to support the development of two large-scale lithium-ion battery cell production facilities, the NorthvoltEtt in Skellefteå, Sweden and the NorthvoltZwei in Salzgitter, Germany.

The company is also investing in battery cell technology, process development and recycling at the recently established factory Northvolt Labs, in Västerås, Sweden, where the first battery cells were produced in late 2019.

Northvolt co-founder and CEO Peter Carlsson said: “The momentum for electrification is stronger than ever. Our customers need large volumes of high-quality batteries with a low CO2 footprint, and Europe must build a fully regionalized value chain to support them.”

Once completed, the new facility, NorthvoltEtt in Skellefteå, is claimed to have a production capacity of 40GWh of battery capacity annually.

The batteries will be used in electric vehicles along with power storage and other industrial purposes. The first part of the facility is expected to start production from next year and the company plans to start recycling batteries from 2022 onwards.

Simultaneously, Northvolt is planning to establish NorthvoltZwei, a joint venture with Volkswagen, which is scheduled to begin operations in 2024, with a potential output of over 20GWh.

By 2030, the Swedish battery-maker aims to have a 25% market share in Europe, which equates to about 150GWh of commissioned annual production capacity. At the same time, it also aims to secure 50% of its raw material needs from recycled batteries.

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Northvolt secures funding to build battery facility in Sweden. (Credit: Northvolt AB.)

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