Northvolt gets $400 million from Ontario fund for green battery
Bloomberg News | June 20, 2023 |
Credit: Northvolt AB
Ontario’s pension fund for government workers is investing $400 million in Northvolt AB, a Swedish sustainable battery company that’s exploring setting up shop in Canada.
The company, which already produces electric-vehicle batteries in Sweden, will use the money from Investment Management Corp. of Ontario to help fund its expansion in Europe, the fund said.
The investment is consistent with IMCO’s view of global trends it believes will persist, chief investment officer Rossitsa Stoyanova said in an interview. “Energy transition is happening and we want to capitalize on it,” she said.
Northvolt is currently in talks with the Canadian and Quebec governments on a potential multibillion-dollar plant near Montreal that could include a cathode factory, a battery cell assembly line and a recycling facility, according to people familiar with the matter. If that deal happens, it may follow a similar structure to a proposed Volkswagen AG battery plant in Ontario, which has been promised billions in government financial help.
Since its founding seven years ago by a pair of former Tesla Inc. executives, Stockholm-based Northvolt has raised money from dozens of investors including Goldman Sachs Group Inc. and Volkswagen. So far, the company has secured more than $55 billion worth of contracts and it has two more factories in the works in Europe — one in Gothenburg, Sweden and another in northern Germany.
The C$73.3 billion ($55.5 billion) Ontario pension fund is investing via convertible notes, said Matthew Mendes, its head of infrastructure. IMCO declined to comment on the potential for a factory near Montreal.
“We fundamentally believe that there’s lots of investor appetite. Their plan is to IPO the business in a number of years, so the convertible structure gives us downside protection, but also allows us to participate and convert into equity at our predefined milestones,” he said.
Northvolt’s aim is to produce a global supply of batteries using locally sourced renewable energy. By 2030, it says its batteries will contain 50% recycled material, and will have a carbon footprint that’s 80% lower than batteries made using coal-fired power.
(By Paula Sambo and Mathieu Dion, with assistance from Brian Platt)
Bloomberg News | June 20, 2023 |
Credit: Northvolt AB
Ontario’s pension fund for government workers is investing $400 million in Northvolt AB, a Swedish sustainable battery company that’s exploring setting up shop in Canada.
The company, which already produces electric-vehicle batteries in Sweden, will use the money from Investment Management Corp. of Ontario to help fund its expansion in Europe, the fund said.
The investment is consistent with IMCO’s view of global trends it believes will persist, chief investment officer Rossitsa Stoyanova said in an interview. “Energy transition is happening and we want to capitalize on it,” she said.
Northvolt is currently in talks with the Canadian and Quebec governments on a potential multibillion-dollar plant near Montreal that could include a cathode factory, a battery cell assembly line and a recycling facility, according to people familiar with the matter. If that deal happens, it may follow a similar structure to a proposed Volkswagen AG battery plant in Ontario, which has been promised billions in government financial help.
Since its founding seven years ago by a pair of former Tesla Inc. executives, Stockholm-based Northvolt has raised money from dozens of investors including Goldman Sachs Group Inc. and Volkswagen. So far, the company has secured more than $55 billion worth of contracts and it has two more factories in the works in Europe — one in Gothenburg, Sweden and another in northern Germany.
The C$73.3 billion ($55.5 billion) Ontario pension fund is investing via convertible notes, said Matthew Mendes, its head of infrastructure. IMCO declined to comment on the potential for a factory near Montreal.
“We fundamentally believe that there’s lots of investor appetite. Their plan is to IPO the business in a number of years, so the convertible structure gives us downside protection, but also allows us to participate and convert into equity at our predefined milestones,” he said.
Northvolt’s aim is to produce a global supply of batteries using locally sourced renewable energy. By 2030, it says its batteries will contain 50% recycled material, and will have a carbon footprint that’s 80% lower than batteries made using coal-fired power.
(By Paula Sambo and Mathieu Dion, with assistance from Brian Platt)
No comments:
Post a Comment