June, Northbolt battery factory in northern Sweden.
Swedish battery maker Northvolt has raised $ 2.75 billion from many well-known companies to accelerate global expansion and increase production.
Headquartered in Stockholm, the company manufactures lithium-ion batteries used to power electric vehicles, with $ 27 billion worth of transactions. BMW And VolkswagenWe aim to produce “the most environmentally friendly batteries in the world” using renewable energy sources and recycled materials.
The biggest and most up-to-date funding round in Northbolt history is Goldman Sachs VW with new investors such as Swedish pension funds AP1, AP2, AP3, AP4 and Canadian pension provider OMERS.Former investors such as Spotify CEO Daniel Ek Investment manager Baillie Gifford is also investing in this round.
Currently, the total investment in the company is $ 6.5 billion. Northbolt was valued at $ 11.75 billion in the latest round of funding, according to a person familiar with the company who wanted to remain anonymous because Northbolt hadn’t announced it.
Founded in 2016, Northvolt will use its funds to expand the capacity of its factory in the far north of Sweden from 40 gigawatt hours to 60 gigawatt hours. That’s enough to supply batteries to about one million electric vehicles. Factory production is scheduled to begin later this year.
Northvolt co-founder and CEO Peter Carlsson told CNBC on Wednesday that the company has “quite important shipments” from a small facility that has been in operation for over a year to its current customers. “He said he was doing” verification. “
None of the company’s batteries are currently installed in electric vehicles on public roads, but they are used in test trucks, Carlson said, and Northbolt batteries have been installed in vehicles since 2023. He added that he expects it to eventually be installed in energy storage applications. next year’s.
VW, this I placed an order for $ 14 billion Said it on Wednesday with Northbolt earlier this year Invested 500 million euros Of the $ 2.75 billion ($ 609 million), 20% of the company’s stake has not changed.
“This investment strengthens our strategic partnership with Northbolt as a supplier of sustainable battery cells produced using renewable energy and comprehensively recyclable,” said Volkswagen Finance and Arno Antritz, a member of the IT Board of Directors, said in a statement.
Michael Brune, Head of EMEA for Private Equity Business at Goldman Sachs Asset Management, told CNBC: “”
Northvolt batteries are built on “different chemistry”. Tesla Carlson, Tesla’s Vice President of Supply Chain for Palo Alto from 2011 to 2015, said the performances are increasingly similar.
Manufacturing batteries in a sustainable way is one of Northbolt’s biggest challenges, he added. If the world shifts to battery-powered electric vehicles from coal-based economies like China, it will generate new carbon dioxide emissions on a Spanish scale, Carlson said. “Based on renewable energy. If you do that, you can prevent this, “he said.
The company’s main plant is in Sweden and is considering building a second plant in Germany if sufficient renewable energy sources are found.
By 2030, we aim to bring the annual production capacity deployed in Europe to 150 gigawatt hours.
Northvolt will raise $ 2.75 billion from Goldman, VW to compete with Tesla.
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