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Battery Maker Northvolt Raises $2.75 Bln To Expand Factory

Battery Maker Northvolt Raises $2.75 Bln To Expand Factory

Swedish lithium-ion battery maker Northvolt said on Wednesday it had raised $2.75 billion in equity to expand its factory in Sweden to 60 GWh from 40GWh to meet increased demand from key customers.

The company said in a statement the private placement was led by Swedish pension funds AP1, AP2, AP3, AP4 and OMERS Capital Markets alongside existing investors Goldman Sachs and Volkswagen .

Other Northvolt shareholders also participated in the equity raise, it added.

“Including the private placement, Northvolt has now raised more than $6.5 billion in equity and debt to enable an expansion plan leading up to and beyond 150 GWh of deployed annual production capacity in Europe by 2030,” it said.

Northvolt, which aims to take on major Asian players such as CATL and LG Chem and targets a 25% market share in Europe by 2030, announced an order worth more than $14 billion from Volkswagen in March, a deal that raised carmaker’s stake in the Swedish firm to around 20%.