Northvolt has raised a convertible note worth more than $1bn as it begins production of its first energy storage systems at its Northvolt Dwa factory in Poland.
The raising of $1.2bn will finance plans for Northvolt’s further European and North American expansion and is an extension of the $1.1bn convertible note signed in July 2022.
It has attracted investment from funds labelled dark green in accordance with Article 9 of the EU’s Sustainable Finance Disclosure Regulation (SFDR).
Leading the extension are the Investment Management Corporation of Ontario (IMCO), BlackRock and Canada Pension Plan Investment Board (CPP Investments), as well as long-term financial partner OMERS, making its third major investment in the company.
In parallel, Northvolt Dwa has assembled its first energy storage system (ESS) products in Gdańsk, Poland as part of its commissioning process.
Producing battery systems at a small-scale facility located in Gdańsk since 2019, Northvolt has built a new 25,000 square metre plant that assembles cells into battery systems for customers in energy storage and industrial markets.
As final validation of production lines concludes, customer deliveries are expected to commence later in the year.
Peter Carlsson, Co-Founder and CEO of Northvolt, said: “I’m proud to see our continued effort being recognised by investors, as we are receiving significant interest from capital markets to support our mission.
“The commitment to global decarbonization is strong, and these milestones reinforces our position to meet the massive demand for sustainable battery solutions both in Europe and North America.”
The $2.3bn convertible round raised to date includes Goldman Sachs Asset Management, AP funds 1-4 (via the co-owned company 4 to 1 Investments), Folksam Group, ATP and Volkswagen Group.
With this capital raise, Northvolt has now secured over $9bn in equity and debt to deliver on over $55bn in orders from key customers, including BMW, Fluence, Scania, Volvo Cars and Volkswagen Group.
Northvolt battery cells are designed and developed at Northvolt Labs in Västerås, Sweden, and Northvolt Cuberg in San Leandro, California, US.
Battery cell manufacturing is ramping up at Northvolt Ett gigafactory, in Skellefteå, Sweden, which will be joined by an adjacent giga-scale recycling plant, Revolt Ett, due to start operations later this year.
Additional projects are under development in Sweden, Germany and Portugal.