VW, BMW complete Northvolt funding for 16 GWh battery cell factory
Northvolt, a Swedish start up looking to construct a Gigafactory to build sustainably and ethically sourced battery cells for EVs, has raised $1 billion in equity capital to complete the funding of its first facility. The construction of the 16GWh factory in Skelleftea, Sweden will commence in August, Northvolt said.
The first mass-produced cells are expected to leave the assembly line in 2021. Northvolt Ett will serve as Northvolt’s primary production site, hosting active material preparation, cell assembly, recycling and auxiliaries. The Gigafactory will be expanded to at least 32 GWh.
VW invests €900 million
Amongst the leading investors are Volkswagen Group, Goldman Sachs Merchant Banking Division, BMW Group, AMF, Folksam Group and IMAS Foundation (IKEA).
VW has set aside €900 million for its joint activities with the Swedish cell maker, which include the setting up of a joint-venture to establish another 16 GWh factory in Salzgitter, Lower Saxony, Germany. The production facility is scheduled to start manufacturing battery cells for Volkswagen from late 2023 or early 2024 and could be increased to 24 GWh over the following years.
By investing in a European battery cell manufacturer, OEMs like VW want to reduce their dependency on the Asian suppliers, which today call the shots and put pressure on Western OEMs.