Swedish lithium-ion battery producer Northvolt said that it has raised $5 billion, the largest green loan to have been issued in Europe, to expand the firm’s battery factory in north Sweden.
Northvolt has successfully obtained over $13 billion in funding through a combination of equity and debt to expand its operations in Sweden, Poland, Germany, the United States, and Canada.
The new debt, which includes refinancing the $1.6 billion raised in 2020, comes from a consortium of 23 commercial banks, along with support from the European Investment Bank and the Nordic Investment Bank.
Sources have indicated that Northvolt is preparing for an initial public offering, with estimates suggesting a potential valuation of over $20 billion.
Previously, the company had secured substantial investments from entities such as BlackRock, Canadian pension plans, Goldman Sachs, Volkswagen, Baillie Gifford, Swedbank Robur, and Singapore’s GIC.
With orders exceeding $55 billion from various automakers, including BMW, Scania, Volvo Cars, and Volkswagen Group, the Swedish company is poised for significant growth.