Northvolt, a Swedish company manufacturing lithium-ion batteries for EVs, has received a USD 400 million investment from the Investment Management Corporation of Ontario (IMCO), a large Canadian pension fund group, in the form of convertible loan notes. This brings Northvolt's total funding to USD 7.5 billion.

This is IMCO’s largest investment in Europe, and Northvolt intends to use the funds for its global expansion plans.

Analyst QuickTake: The investment comes following Northvolt raising USD 1.1 billion through convertible notes in July 2022 , which it intended to use to build new factories in Europe and to expand the production of battery cells and cathode material. Furthermore, since then, the company has partnered with Stora Enso and Scania to advance EV batteries. The collaboration with Stora Enso involved the joint development of a battery that contains an anode made from lignin-based hard carbon produced with sustainably produced wood, while the collaboration with Scania resulted in a new battery cell for heavy EVs.