Venture Capital: BlackRock Amongst Investors Funding NorthVolt With $1.2B
The funding has timed simultaneously with the commencement of assembly of the first battery systems at Northvolt Dwa in Poland.
Northvolt, while producing its first battery systems at its facility in Poland (Northvolt Dwa), has secured $1.2 billion through a convertible note to support its expansion plans in Europe and North America. This funding is an extension of a previous $1.1 billion convertible note signed in 2022. The financing includes investments from environmentally focused funds in compliance with the EU’s Sustainable Finance Disclosure Regulation. Major investors in this round include Investment Management Corporation of Ontario (IMCO), BlackRock, Canada Pension Plan Investment Board (CPP Investments), and OMERS.
Simultaneously, Northvolt Dwa has successfully assembled its first energy storage system (ESS) products in Gdańsk, Poland. The company had been producing battery systems at a smaller facility since 2019, and the new 25,000 square meter plant will assemble cells into battery systems for energy storage and industrial markets. The European Innovation Fund has supported this endeavor. Production line validation is almost complete, and customer deliveries are expected to start later this year.
The company has raised a total of $2.3 billion in convertible rounds, with investments from various entities including Goldman Sachs Asset Management, Volkswagen Group, and GIC. The company has secured more than $9 billion in equity and debt to fulfill orders from major customers like BMW, Scania, and Volkswagen Group.
Alexander Hartman, CFO, stressed the need for both private and public sectors to collaborate on a massive scale to achieve ambitious environmental goals.
Northvolt’s battery cells are developed in Sweden and the US, and battery cell manufacturing is underway at its Skellefteå gigafactory in Sweden. The company is also planning a recycling plant and has projects in development in multiple countries.
Northvolt is recognized as a premium supplier of sustainable battery cells and systems, aiming to deliver environmentally friendly lithium-ion batteries with minimal CO2 emissions. It was founded in 2016 and has grown significantly since, employing over 5,000 individuals from various nationalities.
Related Story: Swedish “Green” Battery Maker Northvolt Raises $2.75B
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