Northvolt, once valued as a leading European battery tech company, raised billions to develop lithium‑ion cells and recycling facilities. Headquartered in Stockholm, Sweden, it aimed to establish a localized supply chain for electric vehicle and energy storage batteries.
Keep reading to learn about Northvolt’s funding and evolution.
What Is Northvolt and What Does It Do?
Founded in 2016 by former Tesla executives, Northvolt AB is a Swedish battery developer and manufacturer focused on sustainable lithium‑ion technology for electric vehicles and energy systems. The company constructed its first gigafactory, Northvolt Ett, in Skellefteå, and developed advanced battery cell systems and recycling processes to support the low‑carbon transition. Northvolt also operated R&D facilities at Northvolt Labs in Västerås.
How Much Funding Has Northvolt Raised?
1. Major Equity and Strategic Funding (2021)
- Amount Raised: ~$2.75 billion
- Date: June 2021
- Lead Investors: Goldman Sachs, Volkswagen Group
- Other Investors: BMW Group, AMF, Folksam Group, IMAS Foundation
- Purpose: Expand battery manufacturing capacity and compete globally in EV battery production.
2. Additional Equity Capital Raise (2018)
- Amount Raised: ~$1 billion
- Date: 2018
- Lead Investors: Volkswagen Group, Goldman Sachs Merchant Banking Division
- Other Investors: BMW Group, AMF, Folksam Group, IMAS Foundation
- Purpose: Establish Europe’s first large‑scale gigafactory, Northvolt Ett, and build initial manufacturing capabilities.
3. Debt and Project Financing (2024)
- Amount Raised: ~$5 billion in green and project financing
- Date: January 2024
- Lead Investors: European Investment Bank (EIB) and consortium including commercial lenders
- Purpose: Support expansion of Northvolt Ett gigafactory, recycling operations, and sustainable battery production.
4. Convertible Debt for Northvolt Six (2023)
- Amount Raised: ~$150 million
- Date: November 2023
- Lead Investor: CDPQ (Caisse de dépôt et placement du Québec)
- Purpose: Finance construction of Northvolt Six battery factory in Québec, Canada.
Total Funding Raised: Estimated more than $4 billion (equity, debt, and project financing)
Latest Funding Date: January 2024
Latest Known Valuation Estimate: Around $12 billion (reported earlier funding/valuation estimates)
Key Investors
- La Caisse (CDPQ)
- Details: Canada’s major institutional investor providing convertible debt for Northvolt’s Québec‑area factory project.
- Focus Areas: Sustainable infrastructure and industrial manufacturing.
- Goldman Sachs
- Details: Global investment bank participating in major equity funding rounds.
- Focus Areas: Strategic capital for industrial and technology growth.
- Volkswagen Group
- Details: Major automaker investing to secure battery supply and joint venture capacity.
- Focus Areas: Electric vehicle battery production and strategic partnerships.
- BMW Group
- Details: Automotive investor supporting factory expansion and production scaling.
- Focus Areas: EV battery supply chain integration.
- AMF, Folksam Group, IMAS Foundation
- Details: Institutional and pension fund investors backing Northvolt’s manufacturing and technology ambitions.
- Focus Areas: Industrial growth and sustainable energy development.
Where Is Northvolt’s Headquarters?
Northvolt was headquartered in Stockholm, Stockholm County, Sweden, serving as the central hub for leadership, strategy, and global coordination of its battery manufacturing and R&D initiatives.
What’s Next for Northvolt?
Northvolt’s operations underwent significant change after financial challenges led to bankruptcy proceedings in 2025. Key manufacturing assets, including gigafactories and research facilities, were acquired by companies such as Lyten, which aim to continue and repurpose the battery production infrastructure across Europe and North America. Despite setbacks, the legacy of Northvolt’s strategy may continue under new ownership with renewed focus on sustainable battery tech.
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