Northvolt raises $1.1B to roll out factories in Europe

STOCKHOLM -- Northvolt has raised $1.1 billion in convertible notes from a group of investors to finance expansion of its factories in Europe, the battery maker said in a statement.

Investors participating in the capital raise included AMF, Ava Investors, Baillie Gifford, Folksam Group, PCS Holding, Swedbank Robur, TM Capital and Volkswagen Group.

The Swedish company, whose biggest shareholder is VW, has so far raised about $8 billion in equity and debt. It raised $2.75 billion in equity in June last year, which valued the company at $11.75 billion.

Northvolt has started delivering batteries to customers after assembling its first battery cell at the end of December in its gigafactory in Sweden, making it the first European company to design and manufacture a battery in Europe.

"The combination of political decision making, customers committing even more firmly to the transition to electric vehicles, and a very rapid rise in consumer demand for cleaner products, has created a perfect storm for electrification," CEO Peter Carlsson said in the statement.

Northvolt has to date secured more than $55 billion worth of contracts from customers including BMW, Scania, VW and Volvo Cars.