Rafaela Lindeberg
Tue, August 22, 2023
(Bloomberg) -- Northvolt AB raised $1.2 billion from North American investors including BlackRock Inc. and CCP Investments as the Swedish battery maker is said to be in talks to
Northvolt extended last year’s $1.1 billion convertible note to $2.3 billion to finance an expansion of its production capabilities in Europe and North America, the company said Tuesday. Ontario’s public-sector investment vehicle and its pension fund also invested.
The battery maker has raised more than $9 billion in equity and debt in the past six years, bolstered by over $55 billion in orders from automotive clients including BMW, Volvo Cars and Volkswagen. The company has said it plans to eventually go public.
Bloomberg reported in June that Northvolt is close to a deal to build a battery plant near Montreal, a project that’s expected to be worth about C$7 billion ($5.2 billion). Earlier this year, the company also confirmed it was moving forward with a plant in Germany after Berlin pledged roughly €1 billion ($1.1 billion) in aid.
Meanwhile, Northvolt said that its factory in Gdansk, Poland, has assembled first energy storage system products, with deliveries expected to start later this year.
Bloomberg Businessweek
Exclusive-Northvolt raises $1.2 billion in latest funding round for factory build out - CFO
Supantha Mukherjee and Simon Jessop
Tue, August 22, 2023
STOCKHOLM/LONDON (Reuters) - Swedish lithium-ion battery producer Northvolt has raised $1.2 billion from investors including BlackRock and several Canadian pension plans as it prepares to build new factories in Europe and North America, its finance chief told Reuters.
The fresh funding, through a convertible note, comes as investor demand for companies set to benefit from the move to a low-carbon economy picks up pace, aided by policy initiatives in both regions to accelerate the transition.
"It's a very capital intensive industry... finding the right mix is always hard in this new greenfield kind of transitional projects," Chief Financial Officer Alexander Hartman said in an interview.
Leading the round alongside BlackRock, the world's biggest asset manager, were Canada Pension Plan, Ontario Municipal Employees Retirement System and, as previously reported, pension investor Investment Management Corporation of Ontario.
"The battery manufacturing sector has attractive growth potential driven by the accelerating adoption of battery storage and electric vehicles," said David Giordano, global head of climate infrastructure at BlackRock.
"As a leading investor in the energy transition, we look forward to supporting their continued growth."
Other investors to take part included Goldman Sachs, Volkswagen, Baillie Gifford, Swedbank Robur, Singapore's GIC and Hong Kong-based Chow Tai Fook Enterprises.
A number of funds to invest in the note were classed as 'dark green' under the European Union's sustainable finance framework, a stamp of environmental approval that bodes well for future interest in the company, which ultimately hopes to list, Hartman said.
The fresh funds will help the firm expand its factory footprint, Hartman said. The firm currently has several factories across Europe with the latest a 600 million euros ($654 million) investment to build a plant in Germany, announced in May.
While the company has a facility in the United States, sources said the company is close to finalising plans to build a multibillion-dollar battery factory in Canada that will be announced later this year.
Northvolt declined to comment on the factory plans.
With the latest round, Northvolt has raised more than $9 billion in debt and equity since 2017 in its bid to become Europe's biggest battery manufacturer, including $1.1 billion in convertible notes last year from multiple investors.
It has secured orders of over $55 billion from customers such as BMW, Fluence, Scania, Volvo Cars and Volkswagen.
Separately, Northvolt has assembled its first energy storage system products in Poland and expects to start customer deliveries from later this year.
"We have a business plan... we always want to make sure we have access to the markets," Hartman said.
He declined to comment on whether the company was preparing to go public.
Reuters has previously reported, citing sources, that Northvolt was preparing for an initial public offering that could value the company at more than $20 billion.
($1 = 0.9176 euros)
(Reporting by Supantha Mukherjee in Stockholm and Simon Jessop in London; editing by Mark Potter)
Swedish EV battery maker raises $1.2B to expand to North America
Rebecca Bellan
Tue, August 22, 2023
Image Credits: Getty Images
Northvolt, a Swedish producer of lithium-ion batteries, has raised around $1.2 billion from BlackRock and various Canadian pension plans to build new factories in North America and Europe, according to report from Reuters.
Tuesday's announcement signals the first time Northvolt has shared concrete plans to build in North America. If Northvolt builds in the U.S., it'll be able to take advantage of government incentives featured in President Joe Biden's Inflation Reduction Act (IRA). A range of automakers and battery makers — from Hyundai and Stellantis to Panasonic and SK Innovation — have in the last two years announced plans to build EV battery factories in the U.S. or Canada.
The U.S.'s landmark climate legislation has created an arms race with the European Union, as many companies choose the U.S.'s carrots over the EU's sticks and invest in battery production across the pond.
Northvolt didn't say where it will build in North America, but sources told Reuters the company is close to finalizing plans to build a multi-billion dollar factory in Canada, which will be announced later this year. The company already has a facility in California, where it is developing next-generation lithium-metal cell technology to power electric aviation.
Northvolt did not respond to TechCrunch to confirm its factory plans in North America, nor its intentions for expansion in Europe.
Most of Northvolt's activity has been in Sweden — the company has a gigafactory in Skellefteå and is building another in Gothenburg in partnership with Volvo. The battery maker is also building a battery plant in Germany and an energy storage factory in Poland.
BlackRock was joined in leading the $1.2 billion convertible note round by Canada Pension Plan, Ontario Municipal Employees Retirement System and pension investor Investment Management Corporation of Ontario, which had invested $400 million in Northvolt in June.
Participants in the round included Goldman Sachs, Volkswagen, Baillie Gifford, Swedbank Robur, Singapore's GIC and Hong Kong-based Chow Tai Fook Enterprises.
The latest round brings Northvolt's total funding to $9 billion in debt and equity since 2017, including $1.1 billion in convertible notes last year. The company has also secured over $55 billion in orders from customers like BMW, Fluence, Scania, Volvo and Volkswagen.
Convertible notes can convert into equity at a later date, and many companies raise this type of short-term debt before filing for an initial public offering. The strong interest from heavy-hitter investors suggests a confidence in Northvolt's potential to grow and eventually go public at a high valuation.
While Northvolt has not shared plans to go public, Reuters reported in February, citing sources, that the company was indeed preparing for an IPO at a $20 billion valuation.
Tracking the EV battery factory construction boom across North America
No comments:
Post a Comment