Swedish sustainable battery startup Northvolt in talks to raise over $5 billion in funding
In late 2019, we wrote Northvolt after the maker of electric vehicle batteries received a €5.8 million investment from EIT InnoEnergy to support its goal of using 50% recycled materials in all its new battery cells by 2030.
Fast forward three years later, the Swedish lithium-ion battery startup is in talks to raise over $5 billion in funding to pursue its goal of becoming Europe’s biggest battery manufacturer, the Financial Times (FT) reported on Sunday. Citing people familiar with the ongoing talks, the FT said the startup is currently negotiating with a number of banks to raise the amount and an agreement could be reached later this year.
The news also follows a report from Reuters last week that the startup is close to hiring banks for its initial public offering (IPO) in Europe or New York that could value the company at more than $20 billion.
In recent months, Northvolt has raised several billion dollars through debt issuances to finance its factory investments. This includes the issuance of $1.1 billion in convertible notes last year, which enabled the company to increase its production capacity at its gigafactory located in Skelleftea, Sweden.
Founded in 2016 by Peter Carlsson, a former executive at Tesla, and Paolo Cerruti, a former manager at Airbus, Northvolt is a Swedish battery manufacturing company that specializes in the production of lithium-ion batteries for electric vehicles and energy storage systems.
In just a few years, Northvolt has quickly become a leader in the European battery market and has established partnerships with several major companies, including Volkswagen, BMW, and ABB. The company’s goal is to produce high-quality, sustainable batteries that are designed to meet the growing demand for electric vehicles and renewable energy storage systems.
Unlike other battery makers, what sets Northvolt apart is its focus on sustainability. The startup has committed to using only renewable energy in its production processes and to using recycled materials wherever possible. Northvolt has also developed a closed-loop system that allows for the recycling and reuse of materials from old batteries.
In addition to its manufacturing operations, Northvolt is also working on developing advanced battery technologies that could revolutionize the industry. The company’s research efforts are focused on improving battery performance, reducing costs, and increasing energy density.
Northvolt is a promising player in the lithium-ion battery industry and is well-positioned to capitalize on the growing demand for electric vehicles and renewable energy storage systems.