Swedish battery manufacturer Northvolt has received $1.2bn from investors in a funding round to finance new factories in North America and Europe.

Investment companies BlackRock, Canada Pension, Ontario Municipal Employees Retirement System and Investment Management Corporation of Ontario are among the investors.

The Swedish lithium-ion battery producer will use the funds to expand its factory footprint in North America. In May, Northvolt announced plans to build a third giga-factory in Germany which will employ around 3,000 and produce its first batteries in late 2025.

Northvolt has, to date, secured in excess of $55bn from key customers, including BMW, Fluence, Scania, Volkswagen, Volvo Cars and Polestar.

In May, the firm completed the construction of its Poland energy storage system factory which it expects will start production in late 2023.

The factory will receive cells from Northvolt Ett – Northvolt’s European gigafactory which received an EU innovation grant of €75m ($81m).

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By GlobalData

Northvolt has stated its mission is “to deliver batteries with an 80% lower carbon footprint compared to those made using coal energy.”

Though Northvolt is a private company, Reuters reported in February that it was close to hiring banks for an initial public offering, valuing it at more than $20bn.