The largest green loan raised in Europe to date will not only facilitate the expansion of Europe's first homegrown gigafactory, Northvolt Ett, but also the realization of Northvolt's ambitious plans for battery recycling.
Original press release developed via Business Wire
Stockholm, Sweden – Northvolt today announced the signing of a $5 billion non-recourse project financing to enable the expansion of Northvolt Ett in northern Sweden. The deal represents the largest green loan raised in Europe to date.
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.
Peter Carlsson, Co-Founder and CEO of Northvolt, commented: “This financing is a milestone for the European energy transition. It will enable us to realize the full potential of Northvolt Ett and demonstrates that circular, sustainable business practices are fundamental to success in today’s industry.”
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 InvestEU programme.
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