Northvolt announced the signing of a $5 billion non-recourse project financing to enable the expansion of Northvolt Ett in northern Sweden. The deal represents the largest green loan raised in Europe to date

In addition to the expansion of Northvolt Ett’s cathode production and cell manufacturing, the finance package will enable the expansion of the adjacent recycling plant, Revolt Ett, which is approaching the conclusion of its commissioning and is processing its first materials.

The EIB financing is backed by the Swedish National Debt Office and the European Commission’s InvestEU programme, and partially intermediated through commercial banks participating in the project financing.

Northvolt for battery cell production in Sweden

The new debt includes refinancing of the $1.6 billion debt package raised in July 2020, and has been raised on the back of long-term offtake contracts amounting to over $55 billion with partners including BMW, Scania, Volvo Cars and Volkswagen Group.

Moreover, Scania has planned an investment of over 100 million euros in a battery assembly plant (plus battery laboratory) in its headquarters of Södertälje, Sweden.

This financing package means that Northvolt has now secured more than $13 billion in equity and debt to enable its expansion in Europe and North America, with the facilities 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).

Northvolt raises green loan for battery production

“This has been an incredible team effort, involving long due diligence processes, new partnerships with strong institutions, and developing cutting edge financing structures focused on sustainability – all to close one of the largest green financing deals in history”, stated Alexander Hartman, CFO of Northvolt.

Peter Carlsson, Co-Founder and CEO of Northvolt, added: “This financing is a milestone for the European energy transition. It will enable us to realize the full potential of Northvolt Ett and demonstrates that circular, sustainable business practices are fundamental to success in today’s industry.”

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