Swedish battery manufacturer Northvolt announced on Tuesday that it has raised $5 billion to finance the expansion of both its original gigafactory, Northvolt Ett, as well as that of Revolt Ett, the company’s first recycling plant which is expected to begin processing its first materials soon.
The financial package includes the refinancing of a $1.6 billion debt package raised in 2020 and is provided by a consortium of 23 commercial banks, as well as the European Investment Bank (EIB) and the Nordic Investment Bank (NIB), which are both supported by the European Commission’s InvestEU programme.
At $5 billion, the deal represents the largest green loan raised in Europe to date and brings Northvolt’s total funding amount to over $13 billion.
Northvolt co-founder and CEO Peter Carlsson commented:
“This financing is a milestone for the European energy transition. It will enable us to realise the full potential of Northvolt Ett and demonstrates that circular, sustainable business practices are fundamental to success in today’s industry.”
Today’s confirmation brings to a close rumours that had been circulating since late March of 2023 and follows just a week after the European Commission approved a €902 million German state aid measure to retain Germany as the location of Northvolt's new EV battery manufacturing plant.
Alexander Hartman, CFO of Northvolt, commented:
“This has been an incredible team effort, involving long due diligence processes, new partnerships with strong institutions, and developing cutting edge financing structures focused on sustainability — all to close one of the largest green financing deals in history.”
Lead image via Northvolt. Photo: Uncredited.