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EV Battery Maker Northvolt Raises $2.75B

Illustration of electric car plugged into an outlet.

Swedish electric vehicle battery manufacturer Northvolt said Wednesday that it raised $2.75 billion in new funding.

The company plans to expand its first gigafactory from 40 gigawatt-hours to 60 gigawatt-hours of annual production capacity. Production is scheduled to start later this year, according to a statement from the company. Northvolt is also planning to bulid two more gigafactories in Europe over the next 10 years to meet its 2030 capacity target. The company is looking into Germany for its next gigafactory.

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Swedish pension funds AP1, AP2, AP3 and AP4, OMERS and 4 to 1 Investments led the round, the company said in the statement. Goldman Sachs Asset Management and Volkswagen Group also participated in the round. The funding brings Northvolt’s total equity and debt raised to more than $6.5 billion, per the company.

Venture-backed companies globally in the EV space have raised more than $6.8 billion in funding so far this year, according to Crunchbase data. With gas prices up and public policy mandates to transition toward EV, investors have poured money into electric vehicle startups. Legacy automakers also have publicly committed to investing more in the sector.

However, the $6.8 billion raised by VC-backed EV companies so far this year still paces behind last year’s funding to the sector, when companies raised more than $20 billion. Some of the most high-profile EV companies in the world have also had their own struggles this year, including Tesla pausing hiring and laying off some employees amid fears of a recession.

Founded in 2016, Northvolt is backed by investors including Olympia Group, IMAS Foundation and Volkswagen. The company last raised money with a $2.8 billion venture round in June 2021, according to Crunchbase.

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Illustration: Dom Guzman


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