The funding took the form of a convertible bond, underscoring investor interest in companies that benefit from the transition to a greener economy. This trend is also being supported by government policies in Europe and North America. Alexander Hartman, Northvolt's Chief Financial Officer, noted that the industry has high capital requirements and finding the right balance for such innovative projects is always a challenge.
BlackRock, a major global asset manager, was one of the investors in this round. Other investors included the Canada Pension Plan, the Ontario Municipal Employees Retirement System and the Investment Management Corporation of Ontario. Goldman Sachs, Volkswagen, Baillie Gifford, Swedbank Robur, Singapore's GIC and Hong Kong's Chow Tai Fook Enterprises also participated in the round.
The additional funds will enable Northvolt to expand its production capacity. The company currently has several plants in Europe, with the most recent investment announcement in May involving the construction of a €600 million factory in Germany.
There are also indications that Northvolt is close to confirming that it will build a battery factory in Canada, although the company already has a facility in the US.
Since its inception in 2017, Northvolt has raised more than $9 billion in debt and equity in its quest to become a major battery manufacturer in Europe. This includes $1.1 billion in convertible bonds provided by various lenders over the past year.
The company has received more than $55 billion in orders, with customers including BMW, Fluence, Scania, Volvo Cars and Volkswagen. Hartman underlined Northvolt's vision and intention to constantly adapt to market conditions. Although he didn't comment on whether an IPO is in the pipeline, there have been reports that Northvolt is considering one, which could value the company at over $20 billion.
