AMF in Latest Northvolt Funding Round

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    Stockholm (NordSIP) – According to the IEA’s Sustainable Development Scenario, for the world to meet climate and sustainable energy goals, close to 10 000 gigawatt-hours of batteries and other forms of energy storage will be required worldwide by 2040 – 50 times the size of the current market.

    “IEA projections make it clear that energy storage will need to grow exponentially in the coming decades to enable the world to meet international climate and sustainable energy goals. Accelerated innovation will be essential for achieving that growth,” said IEA Executive Director Fatih Birol. “By combining the complementary strengths of the IEA and the EPO, this report sheds new light on today’s innovation trends to help governments and businesses make smart decisions for our energy future.”

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    In an effort to facilitate this change, Swedish battery maker Northvolt announced it had raised US$1.2 billion to finance plans for its further European and North American expansion at the end of August. Swedish pension fund AMF was one of the many investors participating in this latest funding round.

    “I’m proud to see our continued effort being recognized by investors, as we are receiving significant interest from capital markets to support our mission. The commitment to global decarbonization is strong, and these milestones reinforces our position to meet the massive demand for sustainable battery solutions both in Europe and North America,” Peter Carlsson, Co-Founder and CEO of Northvolt, commented.

    The funding tapped a convertible note originally signed in July 2022 and adds to the  US$1.1 billion worth of funding raised on that occasion. The investment opportunity attracted funds “labelled dark green in accordance with Article 9 of the EU’s Sustainable Finance Disclosure Regulation (SFDR)”. The Investment Management Corporation of Ontario (IMCO), BlackRock and Canada Pension Plan Investment Board (CPP Investments), as well as long-term financial partner OMERS led this latest funding round. Goldman Sachs Bank Europe SE, J.P. Morgan SE, and Morgan Stanley & Co. International plc act as joint placement agents to Northvolt.

    Regarding its SEK220 million investment in Northvolt, AMF‘s Head of Asset Management, Tomas Flodén, noted that despite the current market situation, the Swedish pension fund was able to continue to make this type of investment, thanks to our strong financial position and AMF’s long-term investment horizon. He noted that the SEK1.8 billion investments made so far in Northvolt strengthen AMF’s ability to deliver a good return to its customers while contributing to a more sustainable and competitive Swedish economy.

    In parallel, Northvolt Dwa has assembled its first energy storage system (ESS) products in Gdańsk, Poland, where it has been producing battery systems at a small-scale facility since 2019. Northvolt’s new 25,000 square meter plant assembles cells into battery systems for customers in energy storage and industrial markets, with support from the European Innovation Fund. Customer deliveries are expected to commence before the end of 2023.

    Filipe Albuquerque
    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.
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