Double success for Northvolt: first energy storage systems produced at Northvolt Dwa and $1.2 billion funding raised

By Team IO

As Northvolt assembles its first battery systems at Northvolt Dwa in Poland, the company raised $1.2 billion to finance plans for its further European and North American expansion.

The funding is an extension of the $1.1 billion convertible note signed in July 2022 and has attracted investment from funds labeled “dark green”, following Article 9 of the EU’s Sustainable Finance Disclosure Regulation (SFDR). Leading the extension are the Investment Management Corporation of Ontario (IMCO), BlackRock, Canada Pension Plan Investment Board (CPP Investments), and long-term financial partner OMERS, making its third major investment in the company.

First all-European battery cell for electric cars produced at Swedish gigafactory Northvolt

Marking a new chapter in European industrial history, the cell that was recently produced is the first to have been fully designed, developed and assembled in Europe.

In parallel, Northvolt Dwa has assembled its first energy storage system (ESS) products in Gdańsk, Poland as part of its commissioning process. Producing battery systems at a small-scale facility located in Gdańsk since 2019, Northvolt has built a new 25,000 square meter plant that assembles cells into battery systems for customers in energy storage and industrial markets, with support from the European Innovation Fund. As the final validation of production lines concludes, customer deliveries are expected to commence later in the year.

“To create a pathway for global warming below 1.5°C, both the private and public sectors need to mobilize resources at an unprecedented scale.”

Alexander Hartman

Peter Carlsson, Co-Founder and CEO of Northvolt: “I’m proud to see our continued effort being recognized by investors, as we are receiving significant interest from capital markets to support our mission. The commitment to global decarbonization is strong, and these milestones reinforce our position to meet the massive demand for sustainable battery solutions in Europe and North America.”

With this new capital raise, Northvolt has secured over $9 billion in equity and debt to deliver on over $55 billion in orders from key customers, including BMW, Fluence, Scania, Volvo Cars, and Volkswagen Group.

Alexander Hartman, CFO of Northvolt: “We have found a committed group of investors that understands both the urgent need and massive financial potential in enabling the swift electrification of society. However, there is a long road ahead if Europe and North America are to reach their full potential as leaders of the energy transition. To create a pathway for global warming below 1.5°C, both the private and public sectors need to mobilize resources at an unprecedented scale.”

Northvolt battery cells are currently designed and developed at Northvolt Labs in Västerås, Sweden, and Northvolt Cuberg in San Leandro, California, US. Battery cell manufacturing is ramping up at Northvolt Ett gigafactory in Skellefteå, Sweden, which will be joined by an adjacent giga-scale recycling plant, Revolt Ett, due to start operations later this year. Additional projects are under development in Sweden, Germany and Portugal.

Northvolt was founded in 2016, also thanks to the support of EIT InnoEnergy, to enable the transition to a decarbonized future; the company has made swift progress on its mission to deliver the world’s greenest lithium-ion battery with a minimal CO2 footprint and has grown to over 5,000 people from over 120 different nationalities.