Northvolt $2.75 billion capital raise another ‘milestone’ in industrial ramp up to achieve European Green Deal, says EIT InnoEnergy

Responding to the need to increase annual battery production to meet growing demand for electrification, new capital from existing shareholders including EIT InnoEnergy, and new shareholders Sweden’s AP 1-4 pension funds and Canada’s OMERS, brings the total financing, in both equity and debt, raised by Northvolt to $6.5 billion.

Welcoming the announcement, Diego Pavia, CEO of EIT InnoEnergy, said: “Northvolt is a tremendously successful initiative. It represents a cornerstone in Europe’s ambition to create an annual €250 billion battery value chain by 2025, as envisioned in 2017 when European Commission Vice President Šefčovič launched the European Battery Alliance and mandated EIT InnoEnergy to lead the industrial ecosystem. It is also a leading example of how Europe can create new industrial value chains, which are at the core of growth, job creation and competitiveness.”  

“The European Battery Alliance brings together more than 600 industrial, financial and innovation actors with the objective to build a strong, sustainable and competitive European industrial battery value chain, from mining to recycling. By facilitating collaboration between mission-driven businesses and public institutions on this key energy transition challenge, we Europeans are succeeding in our endeavour to deliver the European Green Deal. Relevant achievements include the number of EVs sold in Europe in 2020 (1.365 million) being triple that of the US, and the investments captured (€60 billion) almost three times that of China.”

Speaking on the capital raise, Peter Carlsson, co-founder and CEO of Northvolt said: “We have a solid base of world-class investors and customers on-board who share Northvolt’s mission of building the world’s greenest battery to enable the European transition to renewable energy.”

Alexander Hartman, CFO of Northvolt adds: “This is a new European industry in the making and it will require significant investments over the coming decade. It is encouraging to see that the investor community has identified the opportunity early, and we hope to see more investments throughout the value chain over the coming years.”