Northvolt, the Swedish lithium-ion battery manufacturer, announced on Tuesday that it successfully secured a USD 5 billion green loan, marking the largest of its kind in Europe. The funds will be utilised to support the expansion of its battery factory located in northern Sweden.
With this latest financial injection, Northvolt has amassed a total of over USD 13 billion in a combination of equity and debt, aimed at facilitating growth in various locations including Sweden, Poland, Germany, the United States, and Canada.
The newly acquired debt, which encompasses the refinancing of a USD 1.6 billion debt package from 2020, is made possible through collaboration with 23 commercial banks, the European Investment Bank, and the Nordic Investment Bank.
Notable contributors to Northvolt’s funding include BlackRock, Canadian pension plans, Goldman Sachs, Volkswagen, Baillie Gifford, Swedbank Robur, and Singapore’s GIC.
Northvolt has already garnered orders exceeding USD 55 billion from prominent car manufacturers such as BMW, Scania, Volvo Cars, and Volkswagen Group. According to media reports, Northvolt is gearing up for an initial public offering (IPO), potentially valuing the company at more than USD 20 billion.