Swedish lithium-ion battery maker Northvolt has raised another $5 billion, cementing its position as one of Europe’s best-funded start-ups and recipient of the largest green loan ever granted through the EU. The company is adding this money to its $13 billion fund. equity and debt to expand its operations around the world.
Northvolt will build and expand battery factories in Sweden, Poland, Germany, the United States and Canada. The $5 billion will be used to expand its first mobile production center in Sweden, recently under construction, and expand its recycling plants. Group CEO Peter Carlsson described the deal as “a vital milestone in Europe’s energy transition. “
The new loan is backed by 23 advertising banks, as well as the European Investment Bank and the Nordic Investment Bank. Northvolt recently won European approval for a €902 million ($986 million) grant from the German government to build its gigafactory there. The European Commission gave its approval to the new plant, adding that it will increase the bloc’s long-term energy supply and reduce its dependence on China, according to a statement. Northvolt is also building a plant in Quebec, on Montreal’s south coast, with a contribution of $2. 9 billion from the Quebec government and $4. 4 billion from the federal government. Northvolt’s order book also appears to be full, with more than $55 billion coming from automakers, plus BMW, Volvo, Scania and Volkswagen. an initial public offering that could value it at more than $20 billion, Reuters reports.
China currently dominates the global battery market, with Europe accounting for a measly 3% of global cell production. So it’s pretty clear that Europe is putting a lot of faith in Northvolt – Europe’s biggest hope for a homegrown battery maker – to deliver the goods. And fast. The EU aims to catch up to China and hold 25% of the market by the end of this decade. For Northvolt’s part, it holds a ton of promise, and has said it said that it has made a lower-cost, more sustainable battery using sodium ion technology. Best part, the batteries don’t require lithium, nickel, graphite and cobalt, all minerals dominated by China.
Jennifer is an editor at France-based Electrek, previously working at Wired, Fast Company, and Agence France-Presse. Send them comments, suggestions, or recommendations via X (@JMossalgue) or jennifer@9to5mac. com.