Northvolt raises USD 5 billion to expand its green battery factories

Northvolt has signed a USD 5 billion non-recourse project financing, which is the largest green loan raised in Europe to date. The financing will enable the expansion of Northvolt Ett, its gigafactory for cathode production and cell manufacturing, as well as its battery recycling facility, Revolt Ett.

The loan will refinance the USD 1.6 billion debt package raised in July 2020 and will be provided by 23 commercial banks, as well as the European Investment Bank (EIB) and the Nordic Investment Bank (NIB). A significant portion of the debt is supported by guarantees provided by The Swedish National Debt Office, Euler Hermes, the Export-Import Bank of Korea (KEXIM), Nippon Export and Investment Insurance (NEXI) and the Korea Trade Insurance Corporation (K-Sure).

Peter Carlsson, Co-Founder and CEO of Northvolt, commented: “This financing is a milestone for the European energy transition. It will enable us to realize the full potential of Northvolt Ett and demonstrates that circular, sustainable business practices are fundamental to success in today’s industry.”

Northvolt has now secured more than USD 13 billion in equity and debt to enable its expansion in Europe and North America. The company has received USD 55 billion in orders from key customers, including BMW, Fluence, Scania, Volvo Cars and Volkswagen Group.

Northvolt was advised by Mannheimer Swartling in the transaction.


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