Swedish battery company raises $1.1bn to support factory expansions in Europe

Swedish battery developer Northvolt has raised $1.1bn to support its capacity expansion plans across Europe. The funds were raised through a convertible note and several investors including Volkswagen Group, Olympia Group and Goldman Sachs Asset Management were involved. The statement from the company says, “the company is developing manufacturing capacity to deliver on $55 billion [AD1] in orders from key customers, including BMW, Fluence, Scania, Volvo Cars, and Volkswagen Group. A key aspect to Northvolt’s strategy involves establishing in-house competences and presence throughout the battery value chain, including cathode material production and recycling. Through its large-scale recycling program, Northvolt intends to enable 50% of its raw material requirements to be sourced from recycled batteries by 2030”. Such capacity expansions are strategic responses to rapidly rising consumer demand for batteries and a regulatory focus on electrification of transport.

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