OMERS and Sweden’s AP 1-4 pension funds were joined by existing backers including VW and Goldman Sachs Asset Management in the round, which brings the company’s total equity and debt raised to $6.5bn.
NorthVolt said the new capital would finance further battery cell production capacity and R&D efforts to meet the increasing demand of customers engaged in the transition to decarbonized, electric solutions.
The Swedish company has secured more than $27bn of contracts to date from customers including BMW, Fluence, Scania and Volkswagen.
It also plans to establish recycling capabilities to enable 50% of all its raw material requirements to be sourced from recycled batteries by 2030.
NorthVolt CFO Alexander Hartman said, “This is a new European industry in the making and it will require significant investments over the coming decade.
“It is encouraging to see that the investor community has identified the opportunity early, and we hope to see more investments throughout the value chain over the coming years.”
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