Northvolt, Swedish battery maker, announced the raising of $5 billion in debt to finance the expansion of its gigafactory in northern Sweden.
It will expand cathode production and cell manufacturing at its Northvolt Ett plant. The finance will enable the expansion of the adjacent recycling plant, Revolt Ett.
It is near commissioning and is processing its first materials, the company said. The recycling facility will recover battery-grade metals and constitute an integrated, circular battery production set-up – which it said has not previously existed outside Asia.
The new debt, “the largest green loan raised in Europe,” according to Northvolt, also refinances the $1.6 billion package raised in 2020. It is provided by a consortium of 23 commercial banks, as well as the European Investment Bank and the Nordic Investment Bank, both supported by the European Commission’s InvestEU programme.
Northvolt said it has long-term offtake contracts worth over $55 billion with partners including vehicle manufacturers BMW, Scania, Volvo Cars and Volkswagen Group.
Northvolt has now secured more than $13 billion in equity and debt to enable its expansion in Europe and North America.
Facilities include Northvolt Ett (Skellefteå, Sweden), Northvolt Dwa (Gdansk, Poland), Northvolt Drei (Heide, Germany), Northvolt–Volvo Cars joint venture gigafactory Novo (Gothenburg, Sweden), Northvolt Fem (Borlänge, Sweden), Northvolt Cuberg (San Leandro, US) and the recently announced Northvolt Six (Montreal, Canada).
