ImpactAlpha, June 10 — Stockholm-based Northvolt has raised $2.7 billion to expand a gigafactory from 40 to 60 gigawatt-hours of annual capacity to meet growing demand for its batteries.
The latest round was co-led by Swedish pension funds, AP1, AP2, AP3, AP4, and Canada’s Ontario Municipal Employees Retirement System. Also participating were Goldman Sachs Asset Management, Volkswagen Group and Norrsken VC.
The company says it has secured $27 billion in contracts with customers, including a $14 billion partnership with Volkswagen to supply lithium-ion batteries for electric vehicles in Europe.
Northvolt’s bigger goal: to build two new gigafactories in Europe by 2030 with 150 gigawatt-hours of annual capacity. The company is looking to source half of its raw materials for new batteries from recycled batteries over the next decade.
Global investors are stepping up to deliver green batteries, which will be key to reach the projected 145 million electric vehicles that could hit the road by 2030.
Solid Power raised $130 million to develop solid-state batteries; Clean Energy Ventures backed battery tech startups pair Volexion and Nth Cycle; solid-state lithium-metal battery maker QuantumScape raised $680 million via a reverse merger via a special purpose acquisition company, or SPAC.