VW and Goldman-backed Northvolt gets $1.1 billion funding


Northvolt’s most up-to-date funding announcement comes at a time when main economies are laying out plans to maneuver away from automobiles that use diesel and gasoline.

Mikael Sjoberg | Bloomberg | Getty Pictures

Electrical automobile battery maker Northvolt on Tuesday introduced a $1.1 billion funding enhance, with a spread of buyers — together with Volkswagen and Goldman Sachs Asset Administration — participating within the capital increase.

In a press release, Sweden-based Northvolt stated the $1.1 billion convertible word can be used to finance the corporate’s “growth of battery cell and cathode materials manufacturing in Europe to help the quickly increasing demand for batteries.”

Different buyers within the increase embrace Baillie Gifford, Swedbank Robur, PCS Holding and TM Capital.

Northvolt just lately stated its first gigafactory, Northvolt Ett, had began industrial deliveries to European prospects. The agency says it has orders amounting to $55 billion from companies similar to Volvo Cars, BMW, and Volkswagen.

Gigafactories are services that produce batteries for electrical automobiles on a big scale. Tesla CEO Elon Musk has been extensively credited as coining the time period.

Learn extra about electrical automobiles from CNBC Professional

Northvolt’s most up-to-date funding announcement comes at a time when main European economies are laying out plans to maneuver away from road-based automobiles that use diesel and gasoline.

The U.Ok., for example, needs to cease the sale of latest diesel and gasoline automobiles and vans by 2030. It’ll require, from 2035, all new automobiles and vans to have zero-tailpipe emissions. The European Union — which the U.Ok. left on Jan. 31, 2020 — is pursuing similar targets.

Because the variety of electrical automobiles on our roads will increase, the competitors to develop factories able to manufacturing EV batteries at scale is intensifying, with firms like Tesla and VW trying to set up a foothold within the sector.

In a press release issued Tuesday, Northvolt’s CEO and co-founder, Peter Carlsson — who beforehand labored for Tesla — was bullish concerning the future. 

“The mixture of political resolution making, prospects committing much more firmly to the transition to electrical automobiles, and a really speedy rise in shopper demand for cleaner merchandise, has created an ideal storm for electrification,” he stated.

In accordance with the Worldwide Vitality Company, electrical automobile gross sales hit 6.6 million in 2021. Within the first quarter of 2022, EV gross sales got here to 2 million, a 75% improve in comparison with the primary three months of 2021.

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