Swedish lithium-ion battery manufacturer Northvolt has achieved a groundbreaking feat by securing a $5 billion green loan, marking the largest of its kind in Europe. The substantial funds are earmarked for the expansion of its battery factory situated in northern Sweden, propelling Northvolt’s total equity and debt raised for its global operations to an impressive $13 billion.
The consortium facilitating this monumental green loan comprises 23 commercial banks, complemented by support from the European Investment Bank and the Nordic Investment Bank. This financial boost also involves the refinancing of a $1.6 billion debt package secured by Northvolt in 2020. The company’s financial backing extends from influential entities such as BlackRock, Canadian pension plans, Goldman Sachs, Volkswagen, Baillie Gifford, Swedbank Robur, and Singapore’s GIC.
Having garnered confirmed orders exceeding $55 billion from major automotive players like BMW, Scania, Volvo Cars, and the Volkswagen Group, Northvolt solidifies its position as a key player in the rapidly expanding lithium-ion battery market. Speculations, based on insider information, hint at Northvolt’s preparations for an impending initial public offering (IPO), potentially valuing the company at a remarkable $20 billion or more.
