Northvolt has announced the acquisition of a US$1 billion loan, which will be used to finance its foray into Europe's motive-force battery market. This is the second major loan granted to the company, following a US$400 million loan approved by the European Investment Bank in May, for the funding of its plan to build a lithium-ion battery production base.
The latest loan will be provided by a consortium, headed by Volkswagen Group and Goldman Sachs, with members including BMW Group, Folksam Group of Sweden, and IMAS Foundation, sponsored by IKEA.
In addition to an existing laboratory, Northvolt is building two battery plants in Sweden, Northvolt Ett and Northvolt Labs, which will join a battery plant in Poland, already in operation. The US$1 billion fresh fund will be used to expand Northvolt Ett into a "super plant," with an annual capacity exceeding 32 GWh, the first super plant for lithium-ion battery in Europe. The company reported that it has reached an agreement with many suppliers, with orders having topped US$13 billion as of 2030.
The company will handle the production of active materials, battery assembly and recycling, and assistant equipment.
The company also plans to construct a 16 GWh battery plant in Lower Saxony of Germany, as a 50:50 joint venture with Volkswagen, scheduled for inauguration in late 2023 or early 2024. The plant is capable of producing 500,000 batteries for electric golf carts; a Volkswagen electric golf cart is furnished with a 35 KwH battery.