Northvolt has raised $1 billion equity capital to enable the establishment of Europe’s first homegrown gigafactory for lithium-ion battery cells in Sweden. Volkswagen and BMW are two of the investment partners.
In cooperation with VW, Northvolt also announced plans to establish a second gigafactory with an intended location in Lower Saxony, Germany.
The production facility is scheduled to start manufacturing battery cells for VW from late 2023 or early 2024.
Peter Carlsson, co-founder and CEO of Northvolt, says: “Today is not only a great milestone for Northvolt, it also marks a key moment for Europe that clearly shows that we are ready to compete in the coming wave of electrification, and that we will do so using battery cells which carry the lowest CO2 footprint possible.”
Dr. Stefan Sommer, Member of the Volkswagen AG Board of Management responsible for Procurement, adds: “Volkswagen is laying the groundwork at all levels for the successful implementation of its electrification strategy. With Northvolt, we have found a European partner whose know-how and sustainable, CO2 optimized battery cell production processes will enable us to advance cell production here in Germany.”
Klaus Fröhlich, Member of the Board of Management of BMW AG, Development, says: “Northvolt shares our approach to sustainability – from regenerative power generation to consistent recycling management. We look forward to jointly developing the next generation of battery technology with them.”
Northvolt – founded in 2016 – is a European supplier of sustainable, high-quality battery cells and systems.