Northvolt has inked a $5bn non-recourse project financing agreement, marking a pivotal step towards the expansion of Northvolt Ett in northern Sweden.
This financial milestone represents the largest green loan ever raised in Europe.
The ambitious project encompasses the expansion of Northvolt Ett’s cathode production and cell manufacturing capabilities. Additionally, the financing package will facilitate the growth of the adjacent recycling plant, Revolt Ett, which is on the verge of completing its commissioning phase and is already processing its inaugural materials.
Distinguished by a carbon footprint 70% lower than mined raw materials, this recycling facility sets the stage for a fully integrated, circular battery production setup—a novel concept outside of Asia.
Northvolt co-founder and CEO Peter Carlsson said: “This financing is a milestone for the European energy transition. It will enable us to realise the full potential of Northvolt Ett and demonstrates that circular, sustainable business practices are fundamental to success in today’s industry.”
The substantial debt includes the refinancing of a $1.6bn package secured in July 2020. Anchored by long-term offtake contracts exceeding $55bn with partners such as BMW, Scania, Volvo Cars, and the Volkswagen Group, this financing is provided by a consortium of 23 commercial banks.
Additionally, the European Investment Bank (EIB) and the Nordic Investment Bank (NIB), with support from the European Commission’s InvestEU programme, are pivotal contributors.
Key components of the commercial facilities are underwritten by guarantees and direct funding, a collaborative effort involving 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 landmark financing marks the inaugural loan raised through Northvolt’s Green Finance Framework, established in 2023. Demonstrating the company’s unwavering commitment to sustainability and the circular economy, Northvolt has earned the highest ‘dark green’ rating from external rating company CICERO—an unprecedented achievement in its industrial sector.
Northvolt chief environmental officer Emma Nehrenheim said: “I’m proud to see how our ambition to mass produce the world’s greenest battery attracts top-tier financial partners, as global capital is looking to invest in electrification and climate change mitigation.
“It has become obvious that the creation of a new industry standard not only attracts world-leading talent, but also major financial institutions that aim to align their strategy with long-term macro trends.”
With this financial backing, Northvolt has now amassed over $13bn in equity and debt, positioning the company for expansive growth in both Europe and North America.
The expansion encompasses facilities including Northvolt Ett (Skellefteå, Sweden), Northvolt Dwa (Gdansk, Poland), Northvolt Drei (Heide, Germany), the Northvolt–Volvo Cars joint venture gigafactory ‘NOVO’ (Gothenburg, Sweden), Northvolt Fem (Borlänge, Sweden), Northvolt Cuberg (San Leandro, US), and the recently unveiled Northvolt Six (Montreal, Canada).
BNP Paribas served as Northvolt’s senior debt adviser for this financing package, while legal counsel was provided by Allen & Overy and Mannheimer Swartling.
