Northvolt Lands $600 Million Round
|Swedish entrepreneur Cristina Stenbeck (of AB Kinnevik) chipped into Northvolt’s new private round.
Photo credit: picture alliance / Andreas Gebert, licensed under Creative Commons
Northvolt, a Swedish battery developer and manufacturer, has announced that it’s landed $600 million in fresh private funding from a group of investors that include automakers Volkswagen and Scania, investment bank Goldman Sachs, asset management firms Baillie Gifford and Baron Capital Group, and Swedish entrepreneurs Cristina Stenbeck (AB Kinnevik) and Daniel Ek (Spotify). Northvolt will use the new capital to make further investments in expanding its battery production and recycling capacity, as it aims to establish 150 GWh of annual battery manufacturing capacity in Europe by the year 2030.
Northvolt is currently building a battery ‘gigafactory’ in the Swedish city of Skellefteå that it says will have a potential annual production output of 40 GWh. In the same time frame, the company also plans to build a large-scale battery recycling factory beside the production facility that’ll have an initial annual capacity of 4 GWh. Also, Northvolt plans to set up yet another large-scale battery production facility in Germany that’ll be operational by 2024, as it currently seeks and awaits permission from the government.
Northvolt is aiming to be a major battery manufacturer based out of Europe that’ll supply lithium-ion batteries used to make electric cars to other automakers. Already, the Swedish company has garnered industrial partners including automakers Volkswagen and BMW. Northvolt was founded just in 2016 but has managed to garner over $3 billion in equity and debt funding for its capital-intensive operations. The company currently employs over 800 people who support its operations and plans to produce and deliver lithium-ion batteries for electric vehicles on a large scale.
Investment banks Goldman Sachs and Morgan Stanley acted as financial advisors to Northvolt on its new private round.