European battery gigafactory startup Northvolt has raised $600m (€512)in equity financing from a new set of investors. This brings the total investment to $3.3bn (€2.8bn) after signficant support form the European INvestment Bank (EIB) and Volkswagen.
The new equity backing comes from institutional investors Baillie Gifford as the lead, Baron Capital Group, Bridford Investments Limited, Norrsken VC & PCS Holding along with private investors Cristina Stenbeck and Daniel Ek.
Current Northvolt shareholders Goldman Sachs Merchant Banking Division, IMAS Foundation, Scania and Volkswagen joined the equity raise, which enables further investments to support the target of establishing 150 GWh of manufacturing capacity in Europe by 2030. It will also be used to boost R&D and the recucling capability alongside the plant in Ett, Sweden.
“We are in the middle of a race to establish manufacturing capacity in Europe, and I believe the companies that are best at attracting talent and capital, while scaling their blueprints the fastest, will be the most successful. With these world-class partners behind us, we have created a solid foundation to go on and execute our plans to enable large-scale manufacturing of green batteries in Europe,” said Peter Carlsson, co-founder and CEO of Northvolt.
The recycling plant will become the largest in the world with an initial capacity of 4 GWh, and the only large-scale facility in Europe capable of recycling lithium in addition to cobalt, nickel, manganese and other metals. The Northvolt Ett gigafactory in Skellefteå, Sweden, with a potential annual output of 40 GWh, is under construction and scheduled for start of production in 2021. In parallel, the permitting process is underway for Northvolt Zwei in Salzgitter, Germany, which is scheduled to commence operations in 2024 with an initial output of 16 GWh.
Collectively, these initiatives will facilitate Northvolt's target of a 25 percent market share in Europe by 2030, equaling approximately 150 GWh of commissioned annual production capacity, with 50 percent of its raw material coming from recycled batteries.