Northvolt, a European EV battery and energy storage producer, has raised USD 1.2 billion in convertible notes. This was an extension of the previous USD 1.1 billion raised in July 2022 and was led by the Investment Management Corporation of Ontario (IMCO), BlackRock, Canada Pension Plan Investment Board (CPP Investments), and long-term financial partner OMERS. The company has raised a total of over USD 9 billion in equity and debt financing thus far.

Northvolt intends to use the funds to expand into Europe and North America. As of August 2023, the company has secured over USD 55 billion in battery orders from a range of customers, including BMW, Fluence, Scania, Volvo Cars, and Volkswagen Group.

In addition to the funding round, Northvolt has begun assembling its energy storage systems at its new facility known as “Northvolt Dwa” in Gdańsk, Poland. With support from the European Innovation Fund, the 25,000 sq m facility has been constructed to assemble cells into battery systems for customers in energy storage and industrial markets. Northvolt intends to begin deliveries to customers in 2023, following the final validation of production lines. 

Analyst QuickTake: In June 2023 , Northvolt received another investment of USD 400 million in the form of convertible loan notes from the Investment Management Corporation of Ontario (the lead investor in the latest USD 1.2 funding round). Similar to the above round and the earlier USD 1.1 billion funds obtained in 2022, the company intended to use them for its global expansion plans.