Northvolt, Stockholm, Sweden, has announced the completion of a $1.6 billion debt raise provided by a consortium of the following commercial banks, pension funds and public financial institutions: APG, BNP Paribas, Danske Bank, Danica Pension, IMI – Intesa Sanpaolo, ING, KfW IPEX-Bank, PFA Pension, SEB, Siemens Bank, SMBC, Société Générale, Swedbank and UniCredit, as well as the European Investment Bank, the Nordic Investment Bank and the Export-Import Bank of Korea (KEXIM). The loan is structured with certain credit guarantees from Euler Hermes, Nippon Export and Investment Insurance (NEXI) and BPI France.
“The momentum for electrification is stronger than ever. Our customers need large volumes of high-quality batteries with a low CO2 footprint, and Europe must build a fully regionalized value chain to support them,” said Peter Carlsson, co-founder and CEO, Northvolt.
Markus Scheer, member of the Management Board of KfW IPEX-Bank, said: “We are very proud to contribute to this flagship project of European E-mobility. With our participation in financing we also further establish our position in the market for projects of energy transition.”
The Northvolt plant located in Skellefteå, Sweden, with a potential annual output of 40 GWh, is under construction and scheduled for start of production in 2021. The company targets a 25 percent market share in Europe by 2030, equaling approximately 150 GWh of commissioned annual production capacity. At this same time, Northvolt aims to secure 50 percent of its raw material requirements from recycled batteries.