The Swedish Battery producer Northvolthas secured loans totaling $ 1.6 billion for the massive expansion of its production. The company announced on Wednesday in Stockholm. Donors include other banks, pension funds and financial institutions, including the European Investment Bank (EIB), which provides $ 350 million.
This enables the company, which as a partner as from BMWand Volkswagenalso plays a key role in the electrical plans of German manufacturers to advance his ambitious large-scale projects. The lithium battery manufacturer has now raised a total of three billion dollars through loans and the sale of shares, which are to flow into the construction of two large factories in Salzgitter and Skellefteå in northern Sweden, as well as in research and development.
“The momentum of electrification is greater than ever,” said Northvolt co-founder and CEO Peter Carlsson (50). “Our customers need large quantities of high quality, low carbon footprint batteries, and Europe needs to build a fully regionalized value chain to support them.”
Carlsson founded Northvolt in 2016 together with Paolo Cerrutti (50). Because of the great industry demand for battery cells the two former Tesla managers are among the most sought-after men in the automotive industry. Already in 2019, Cerrutti told manager magazin that they were almost sold out – according to plans, production will only start next year.
Another major order was recently received: Northvolt is to supply battery cells with a value of two billion euros to Munich-based carmaker BMW from 2024. They are to be manufactured in the factory currently being built in Skellefteå. BMW builds the batteries for its electric vehicles itself, but the Munich buy the cells.
Northvolt is also cooperating with Volkswagen. The Swedes are building the factory in Salzgitter together with the Lower Saxony. While production at the Northvolt Ett plant in Skellefteå is slated to begin in 2021, Northvolt Zwei’s operations in Salzgitter should not start until 2024.