Northvolt secures $5 billion loan for the expansion of homegrown giga factory and battery recycling plant
Swedish battery manufacturer, Northvolt AB has secured a $5 billion loan package that will enable further expansion of its cell manufacturing and battery recycling plant in northern Sweden.
The $5 billion non-recourse project financing represents the largest green loan raised in Europe to date and has been raised through a group of over 20 commercial banks, including European and Nordic financial institutions backed by the European Commission's InvestEU Programme.
The new finance package will enable Northvolt to expand Northvolt Ett's cathode production and cell manufacturing and adjacent battery recycling plant, Revolt Ett.
"This financing is a milestone for the European energy transition. It will enable us to realize the full potential of Northvolt Ett and demonstrate that circular, sustainable business practices are fundamental to success in today's industry," said Peter Carlsson, Co-Founder and CEO of Northvolt.
With the latest finance package, 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 the recently announced Northvolt Six (Montreal, Canada).
"This has been an incredible team effort, involving long due diligence processes, new partnerships with strong institutions, and developing cutting edge financing structures focused on sustainability – all to close one of the largest green financing deals in history," commented Alexander Hartman, CFO of Northvolt.
"This is the first loan raised through Northvolt's Green Finance Framework created in 2023," Hartman added.