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BlackRock takes lead in €1.1bn capital raise by Sweden’s Northvolt

Latest funding an extension of the $1.1bn convertible issued in July 2022

Swedish battery maker Northvolt has raised $1.2bn (€1.1bn) from a BlackRock-headed capital raise.

A release on the firm’s website said that the latest funding is an extension of the $1.1bn convertible note signed in July 2022, and has attracted investment from funds labelled dark green in accordance with Article 9 of the EU’s Sustainable Finance Disclosure Regulation (SFDR).

Alongside BlackRock, leading the extension are the Investment Management Corporation of Ontario (IMCO) and Canada Pension Plan Investment Board (CPP Investments), and OMERS. IMCO has previously invested $400m in Northvolt, while the Q1 report for CPP Investments indicates that the fund invested $55m into Northvolt during its convertible note issuance earlier this year.

Peter Carlsson, co-founder and CEO of Northvolt, said: “I’m proud to see our continued effort being recognized by investors, as we are receiving significant interest from capital markets to support our mission. The commitment to global decarbonization is strong, and these milestones reinforces our position to meet the massive demand for sustainable battery solutions both in Europe and North America.”

The $2.3bn convertible round raised to date includes Goldman Sachs Asset Management, AP funds 1-4 (via the co-owned company 4 to 1 Investments), Folksam Group, ATP, Volkswagen Group, AMF, Ava Investors, IMAS Foundation, Baillie Gifford, Swedbank Robur, PCS Holding, Olympia Group, TM Capital, Compagnia di San Paolo through Fondaco Growth, East Innovate, ADQ, GIC, Chow Tai Fook Enterprises (CTFE) and J. Safra Sarasin.

All this comes months after Expert Investor wrote about how a Nordic-centred deal worth €2.3bn to generate onshore wind power in Finland had been struck. Back then, we noted that Northvolt had said it was going to invest in building a new ‘megafactory’ in Heide, Germany. Estimates put that investment at €600m, although the final decision still depends on whether subsidies are granted, said Northvolt.

Alexander Hartman, CFO of Northvolt, said: “We have found a committed group of investors that understands both the urgent need and massive financial potential in enabling the swift electrification of society. However, there is a long road ahead if Europe and North America are to reach their full potential as leaders of the energy transition.

“To create a pathway for global warming below 1.5°C, both the private and public sector need to mobilize resources at an unprecedented scale.”

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