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TLDR:
- Northvolt, a Swedish battery manufacturer, has confirmed it is raising $5bn in debt to fund its expansion plans. The financing round is being led by Goldman Sachs and will be used to support the construction of two battery gigafactories in Europe.
- The first of the two gigafactories is already under construction in northern Sweden and is expected to start producing batteries in 2021. The second gigafactory will be built in Germany. Together, the two facilities will have a combined production capacity of 40 GWh (gigawatt hours) per year by 2024.
- Northvolt aims to become one of the leading suppliers of batteries for electric vehicles in Europe. The company has secured several significant partnerships with automakers, including BMW and Volkswagen.
Swedish battery manufacturer, Northvolt, has confirmed it is raising $5m in debt financing to fund its expansion plans. The financing round is being led by Goldman Sachs and will support the construction of two battery gigafactories in Europe. The first factory is already under construction in northern Sweden and is expected to start producing batteries in 2021, while the second facility will be built in Germany. The two factories are expected to have a combined production capacity of 40 GWh per year by 2024.
The funding will be used to accelerate Northvolt’s goal of becoming a leading supplier of batteries for electric vehicles in Europe. The company has secured several significant partnerships with automakers, including BMW and Volkswagen. These partnerships will help drive Northvolt’s growth in the rapidly expanding EV market.
By opening two gigafactories in Europe, Northvolt aims to address the increasing demand for batteries in the region. The expansion will help alleviate the current battery supply shortage and reduce reliance on battery imports from Asia. Northvolt aims to establish a sustainable battery manufacturing ecosystem in Europe, supporting local supply chains and reducing carbon emissions associated with transportation.
Northvolt’s gigafactories will be powered by renewable energy sources, further contributing to their sustainability goals. The company’s commitment to sustainability and environmentally friendly practices has attracted significant interest from investors, including the European Investment Bank, which has provided a €350m loan to support Northvolt’s expansion plans.
The construction of the first gigafactory in Sweden is already underway, with production expected to begin in 2021. The factory will employ around 3,000 people and will have an initial battery production capacity of 16 GWh per year. The factory’s capacity will be gradually increased to reach 40 GWh per year by 2024. The second gigafactory in Germany will further enhance Northvolt’s production capabilities, meeting the growing demand for batteries in the region.
The completion of the financing round will mark a significant milestone for Northvolt as it seeks to establish itself as a major player in the European battery manufacturing industry. With the financial backing from leading investors like Goldman Sachs, Northvolt is well-positioned to achieve its ambitious expansion plans and become a key supplier for the booming EV market.
