It is the leading ClimateTech company in Europe: Northvolt has now announced that it has received project financing worth $5 billion. This loan enables the expansion of the “Northvolt Ett” Gigafactory in Sweden and is the largest green loan in Europe. The financial package will not only expand cathode production and cell manufacturing at Northvolt Ett, but also the neighboring Revolt Ett recycling plant. This facility, which is nearing commissioning, will extract battery metals with a significantly lower carbon footprint than mined raw materials. This will enable fully integrated, circular battery production that has not previously existed outside of Asia.
Peter Carlsson, CEO of Northvolt, emphasized the importance of this financing for Europe’s energy transition and the need for sustainable business practices. The refinancing of the previous loan amounting to $1.6 billion as well as long-term purchase agreements with partners such as BMW and Volkswagen made the new debt possible. This is provided by 23 commercial banks, the European Investment Bank and the Nordic Investment Bank. In addition, certain commercial entities are covered by guarantees from the Swedish National Debt Office, Euler Hermes, the Export-Import Bank of Korea, Nippon Export and Investment Insurance and the Korea Trade Insurance Corporation.
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There are now $13 billion in Northvolt
This loan is the first to be raised under Northvolt’s Green Finance Framework, which has received highest “dark green” ratings from external rating agencies. Emma Nehrenheim, Chief Environmental Officer at Northvolt, was proud of the financial partners’ commitment and emphasized the importance of sustainable investments in electrification and climate protection. With this financing, Northvolt has now secured more than $13 billion in equity and debt to fuel its expansion in Europe and North America. Northvolt’s various facilities, including a Gigafactory in cooperation with Volvo Cars, are located in Sweden, Germany, Poland, the USA and Canada.
Northvolt also recently announced a breakthrough in sodium-ion batteries. These are batteries in which sodium is used instead of lithium – a raw material that is easier and more cost-effective to obtain than lithium. “Northvolt’s validated cell is safer, more cost-effective and more sustainable than traditional nickel, manganese and cobalt (NMC) or iron phosphate (LFP) chemicals and is made with minerals such as iron and sodium, which are abundant in global markets.” , it said. Many people now expect that Northvolt will go public in 2024.
Battery unicorn Northvolt is building a gigafactory in Germany – thanks to large subsidies