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Updated January 16th, 2024 at 12:16 IST

Northvolt raises $5 billion for battery plant expansion in Northern Sweden

Northvolt secures $5 billion for Sweden battery plant expansion, pushing total funds raised to $13 billion globally.

Reported by: Business Desk
Edited by: SEO Desk
northvolt
northvolt | Image:Shutterstock

Europe's largest green loan: Swedish lithium-ion battery manufacturer, Northvolt, announced on Tuesday that it has secured a $5 billion green loan, marking the largest of its kind in Europe. The funds will be utilised for the expansion of its battery factory located in northern Sweden. This brings the company's total equity and debt raised for its operations in Sweden, Poland, Germany, the United States, and Canada to over $13 billion.

The substantial debt, which also involves the refinancing of a $1.6 billion debt package obtained in 2020, has been provided by a consortium of 23 commercial banks, alongside support from the European Investment Bank and the Nordic Investment Bank. Previous investments from notable entities such as BlackRock, Canadian pension plans, Goldman Sachs, Volkswagen, Baillie Gifford, Swedbank Robur, and Singapore's GIC have contributed to Northvolt's financial backing.

With confirmed orders exceeding $55 billion from major car manufacturers including BMW, Scania, Volvo Cars, and Volkswagen Group, Northvolt continues to establish itself as a key player in the rapidly growing lithium-ion battery market. Earlier reports, citing sources, indicated that the company is gearing up for an initial public offering (IPO) that could potentially value Northvolt at over $20 billion.

(With Reuters Inputs)

Published January 16th, 2024 at 12:16 IST

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