Northvolt raises $5B for world-first circular gigafactory

Two workers in hard hats overlook battery production facility (Northvolt)
Image: Northvolt

Swedish battery developer Northvolt has secured $5 billion in finance to enable the expansion of Northvolt Ett in northern Sweden—set to become the first circular gigafactory in the western world.

Related article: Recharge engages Accenture for Australian gigafactory 

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 facility recovers battery-grade metals with a carbon footprint 70% lower than mined raw materials, thereby enabling a fully integrated, circular battery production setup that has not previously existed outside of Asia.

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

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.

This is the first loan raised through Northvolt’s Green Finance Framework created in 2023. Reflecting the company’s commitment to sustainability and the circular economy, Northvolt received the highest ‘dark green’ rating attainable for its framework from the external rating company CICERO— the first industrial actor in its sector to do so.

Related article: Recharge Industries finalises Britishvolt takeover

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 Northvolt Six (Montreal, Canada).

Previous articleActewAGL and Evie launch new EV fast chargers in ACT
Next articleNeoen to decommission DeGrussa solar and storage project