Northvolt, the prominent Swedish lithium-ion battery producer, has successfully raised £5bn through the largest green loan in Europe. This substantial financial injection is earmarked for the expansion of its state-of-the-art battery factory located in northern Sweden.

Having already secured over £13bn in equity and debt, Northvolt is poised to extend its operations across multiple countries, including Sweden, Poland, Germany, the US and Canada.

The newly acquired debt encompasses the refinancing of a £1.6bn debt package procured in 2020. This extensive financial support has been made possible through collaboration with a consortium of 23 commercial banks, along with contributions from the European Investment Bank and the Nordic Investment Bank.

Northvolt announced it received $1.2bn in August 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’s financing success builds upon previous investments from notable entities such as BlackRock, Canadian pension plans, Goldman Sachs, Volkswagen, Baillie Gifford, Swedbank Robur, and Singapore’s GIC.

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The company’s strategic vision has attracted a significant influx of funds, facilitating its mission to revolutionise the lithium-ion battery industry.

The Swedish company has already secured orders surpassing £55bn from a diverse array of automakers, including BMW, Scania, Volvo Cars, and Volkswagen Group.

This robust demand underscores Northvolt’s pivotal role in the rapidly evolving electric vehicle market, positioning itself as a crucial supplier for major players in the automotive industry.

Last year, Northvolt and Taiwan-based ProLogium announced plans to set up electric vehicle (EV) battery manufacturing facilities in Europe.

In a joint statement, Northvolt and the German government said the Sweden-based company will set up a gigafactory in Heide, Germany.

The 60 GWh factory will create 3000 direct jobs in Heide and thousands of additional jobs in the surrounding industry and service sectors.