Help Desk -
9717405332, 9599714297, 9810335381
Email
Password

Northvolt Gets Funds For Lithium Ion EV Batteries Factory in Sweden & Plans Second Plant in Germany

Auto News - Published on Fri, 14 Jun 2019

Image Source: northvolt.com
Northvolt announced the agreement of a USD 1 billion equity capital raise to enable the establishment of Europe’s first homegrown gigafactory for lithium-ion battery cells, Northvolt Ett, in Skellefteå, Sweden. European Investment Bank has approved in-principle a USD 400 million loan as a part of the total funding for Northvolt Ett. Together with additional debt being raised, the establishment of the initial 16 GWh of lithium-ion battery cell manufacturing capacity at Northvolt Ett is enabled. Building construction work will commence in August with large-scale production estimated to begin in 2021. Northvolt Ett will serve as Northvolt’s primary production site, hosting active material preparation, cell assembly, recycling and auxiliaries. The gigafactory will be expanded to at least 32 GWh.

Volkswagen Group together with funds managed by the Merchant Banking Division of the Goldman Sachs Group, Inc will lead the equity fund raising alongside equity being provided by the BMW Group, AMF, Folksam Group and IMAS Foundation. The transaction is subject to approval from the Swedish Competition Authority.

In cooperation with the Volkswagen Group, the company also announced plans to establish a second gigafactory with an intended location in Lower Saxony, Germany. In addition to the gigafactory in Sweden, Volkswagen and Northvolt plan to set up a 50/50 joint venture to establish a 16 GWh battery cell factory with an intended location in Salzgitter, Lower Saxony, Germany. Volkswagen is investing around USD 1 billion in joint battery activities with Northvolt. A part of the amount is intended for the joint venture, another part of the total amount will be invested directly in Northvolt. The production facility is scheduled to start manufacturing battery cells for Volkswagen from late 2023 or early 2024 and could be increased to 24 GWh over the following years.


Northvolt is a European supplier of sustainable, high-quality battery cells and systems. Founded in 2016 to enable the European 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 the highest ambitions for recycling. Among Northvolt industrial partners and customers are ABB, BMW Group, Scania, Siemens, Vattenfall, Vestas and the Volkswagen Group. For more information visit northvolt.com.

Source :

Posted By : Rabi Wangkhem on Fri, 14 Jun 2019
Related News from Auto segment