Swedish battery maker Northvolt raises $5 billion for battery recycling

ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, January 17 — Stockholm-based Northvolt isn’t just looking to lead the green battery race in Europe – it’s plotting world domination. Since 2016, the company has secured over $55 billion in contracts for lithium-ion batteries from BMW, Scania, Volvo, Volkswagen and other global customers.

Northvolt is rolling out batteries from its flagship gigafactory in Sweden. The new $5 billion debt financing package, backed by nearly two dozen commercial banks including the European and Nordic investment banks, brings the company’s total funding to $13 billion.

The fresh funds will help Northvolt expand its battery recycling plant. Northvolt aims to source half its raw materials for new batteries from recycled batteries over the next decade. “I’m proud to see how our ambition to mass produce the world’s greenest battery attracts top-tier financial partners,” said Northvolt’s Emma Nehrenheim

Charged up

Battery manufacturers and recyclers raked in billions of dollars in investment last year, even as overall EV investment declined (see, “Battery innovation speeds the energy transition”). Battery investments rose from $979 million in 2020 to $6.2 billion in 2023.

Northvolt is seeking to build gigafactories with 150 gigawatt-hours of annual capacity to supply the projected 145 million electric vehicles that could hit the road by 2030.