The Investment Management Corporation of Ontario (IMCO) is investing $400m in Northvolt, a European integrated battery platform focused on the R&D, manufacturing and recycling of sustainable battery cells and systems.
The funds, via IMCO’s Fundamental Equities and Global Infrastructure funds, will enable Northvolt’s planned global expansion, aligned with IMCO and the company’s commitment to a deeply sustainable battery supply chain.
Northvolt’s first gigafactory, located in northern Sweden, has already begun producing batteries in a sustainable manner using fossil-free electricity.
Future gigafactory additions will support Northvolt’s goal of delivering 150GWh of annual production capacity by 2030.
The company intends to offer the low carbon footprint batteries, designed for use in stationary energy storage systems, electric vehicles (EVs), industrial systems and energy storage systems.
With a strong focus on clean energy manufacturing, regional sourcing and closed-loop circularity via recycling, Northvolt also aims to offer the most sustainable batteries in the industry.
“This innovative collaboration between IMCO’s Fundamental Equities and Global Infrastructure teams is paving the way for meaningful capital deployment towards the energy transition,” said Rossitsa Stoyanova, Chief Investment Officer of IMCO.
“With this investment, we are tangibly delivering on our Climate Action Plan, while also strategically managing material ESG risks, ultimately generating sustainable long-term value for our clients.”
IMCO’s Fundamental Equities strategy invests in select companies and works with the management teams over the long term to unlock shareholder value.