Northvolt announced the signing of a $5 billion non-recourse project financing to enable the expansion of Northvolt Ett in northern Sweden.

In addition to the expansion of Northvolt Ett’s cathode production and cell manufacturing, the finance package will enable the expansion of the adjacent recycling plant, Revolt Ett, which is approaching the conclusion of its commissioning and is processing its first materials. The facility recovers battery-grade metals with a carbon footprint 70% lower than mined raw materials, thereby enabling a fully integrated, circular battery production setup that has not previously existed outside of Asia.

The new debt includes refinancing of the $1.6 billion debt package raised in July 2020, and has been raised on the back of long-term offtake contracts amounting to over $55 billion with partners including BMW, Scania, Volvo Cars and Volkswagen Group. It is provided by a group of 23 commercial banks, as well as the European Investment Bank (EIB) and the Nordic Investment Bank (NIB), who are both supported by the European Commission’s Invest EU programme.

A significant portion of the commercial facilities are covered with certain guarantees combined with direct funding, provided by The Swedish National Debt Office, Euler Hermes, the Export-Import Bank of Korea (KEXIM), Nippon Export and Investment Insurance (NEXI) and the Korea Trade Insurance Corporation (K-Sure).

This is the first loan raised through Northvolt’s Green Finance Framework created in 2023. Reflecting the company’s commitment to sustainability and the circular economy, Northvolt received the highest ‘dark green’ rating attainable for its framework from the external rating company CICERO — the first industrial actor in its sector to do so.

This financing package means that Northvolt has now secured more than $13 billion in equity and debt to enable its expansion in Europe and North America, with the facilities Northvolt Ett (Skellefteå, Sweden), Northvolt Dwa (Gdansk, Poland), Northvolt Drei (Heide, Germany), Northvolt–Volvo Cars joint venture gigafactory ‘NOVO’ (Gothenburg, Sweden), Northvolt Fem (Borlänge, Sweden), Northvolt Cuberg (San Leandro, US) and the recently announced Northvolt Six (Montreal, Canada).

A significant milestone in the European energy transition

"I am thrilled to acknowledge this financing, as it marks a significant milestone in the European energy transition. This achievement, a result of an extraordinary team effort, culminated in one of the largest green financing deals in history. It paves the way for us to fully realize the potential of Northvolt Ett, reinforcing the idea that circular, sustainable business practices are crucial to success in today's industry”, says, Carl-Erik Lagercrantz, vice chairman of Northvolt.