IMCO has invested $400 million in battery producer Northvolt,

Canada’s Investment Management Corporation of Ontario (IMCO) has invested $400 million in battery producer Northvolt, which will help the Swedish company expand production of lithium-ion batteries ahead of a possible initial public offering.

Northvolt, which counts BMW (BMWG.DE) and Volkswagen (VOWG_p.DE) among its investors, last year delivered its first battery cells from its gigafactory in Skelleftea in Sweden.

The group has raised more than $8 billion in debt and equity since 2017 in its bid to become Europe’s biggest battery manufacturer, including $1.1 billion in convertible notes last year from multiple investors.

In its largest deal in Europe yet, IMCO has invested $400 million in Northvolt through convertible notes, it told Reuters.

Northvolt really fits with a lot of the trends we are trying to invest in,Rossitsa Stoyanova, IMCO’s Chief Investment Officer, said in an interview, referring to themes including the transition to a lower-carbon economy and the restructuring of global supply chains. “Whether it (Northvolt) goes public or stays private, we’ve done our homework and we are happy with the investment.”

A Northvolt spokesperson said the company hoped to reveal “the next steps in our financing plan in the near future“.


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