Northvolt co-founder, Swedish funds may inject $9.5M as struggling EV battery startup seeks urgent funding

Last week, we covered Northvolt’s ongoing efforts to secure 200 million euros in short-term funding as the Swedish EV battery startup faces financial struggles. While there’s still uncertainty about whether the funding will come through, it looks like the company might catch a break from one of its co-founders.

According to a Wednesday night report from broadcaster SVT, Harald Mix, who co-founded Northvolt in 2016, is reportedly ready to inject 100 million crowns ($9.5 million) into the company. The report, which cites unnamed sources, also suggests that pension funds AMF and AP may join in on the investment, Reuters reported.

Northvolt has been in talks with investors and lenders to raise around 200 million euros ($217 million), as insiders confirmed last week, with the company’s board and management working to stabilize its finances.

However, Vargas Investment Group, chaired by Mix, has declined to comment on the matter.

Northvolt has quickly shifted from being viewed as Europe’s leading hope for a home-grown EV battery champion to scrambling for funds to stay afloat.

Both Swedish pension fund AMF and the state-owned AP Funds, which are already investors in Northvolt, might increase their contributions. But their participation hinges on whether other shareholders and lenders are also willing to step up, Reuters reported, citing the SVT report.

An AMF spokesperson told Reuters that no decision had been made regarding further funding for Northvolt, while an AP spokesperson said they were keeping a close eye on developments and remaining in ongoing talks.

“Considering the company’s current challenges, we won’t comment further and defer to Northvolt’s communications,” the AP spokesperson added.

Northvolt, for its part, stated: “We generally have constructive dialogue with our investors, lenders, and customers and see progress,” though they declined to share more details.

The company has mentioned that it has made significant strides in recent weeks as it works to raise the necessary funds.

Meanwhile, Bloomberg reported that Goldman Sachs Group’s investment arm, Northvolt’s second-largest shareholder, is also considering joining the efforts to help rescue the battery maker.

We first covered Northvolt in 2019 when it received €5.8 million investment from EIT InnoEnergy to use 50% recycled materials in its battery cells by 2030. In March this year, Northvolt was reportedly in talks to raise over $5 billion to solidify its position as Europe’s largest battery manufacturer. The Financial Times reported that the startup was negotiating with several banks and hoped to finalize an agreement by the end of the year.

Recent reports suggest that Northvolt is close to hiring banks for an initial public offering (IPO) that could value the company at over $20 billion, with options for listings in Europe or New York.

In recent months, Northvolt has raised billions through debt to fund its factory investments. This includes $1.1 billion in convertible notes last year, which helped expand production capacity at its gigafactory in Skelleftea, Sweden.

Founded in 2016 by Peter Carlsson, a former Tesla executive, and Paolo Cerruti, a former Airbus manager, Northvolt specializes in producing lithium-ion batteries for electric vehicles and energy storage. The company has quickly risen to prominence in Europe, securing partnerships with major brands like Volkswagen, BMW, and ABB. Its mission is to create high-quality, sustainable batteries to meet the growing demand for electric vehicles and renewable energy solutions.

While Northvolt currently has a U.S. facility, insiders say the company is close to finalizing plans for a multibillion-dollar battery factory in Canada, with an official announcement expected later this year. Northvolt has declined to comment on these potential factory plans.