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Goldman-backed VW and Northvolt get $1.1 billion in funding

Northvolt’s most recent funding announcement comes at a time when major economies are laying out plans to phase out diesel and gasoline vehicles.

Mikael Sjoberg | Bloomberg | beautiful pictures

Electric vehicle battery maker Northvolt on Tuesday announced a $1.1 billion capital raise, with a host of investors – including Volkswagen and Goldman Sachs Asset Management – participated in the capital raise.

In a statement, Sweden-based Northvolt said the $1.1 billion conversion will be used to fund “expanding production of battery cells and cathode materials in Europe to support rapidly expanding battery demand.”

Other investors in the rally included Baillie Gifford, Swedbank Robur, PCS Holding and TM Capital.

Northvolt recently said its first gigafactory, Northvolt Ett, has begun commercial deliveries to European customers. The company says it has orders of up to $55 billion from businesses like Volvo Cars, BMW carand Volkswagen.

Gigafactories are large-scale production facilities for electric vehicle batteries. Tesla CEO Elon Musk has been widely credited with coining the term.

Read more about electric vehicles from CNBC Pro

Northvolt’s most recent funding announcement comes at a time when major European economies are laying out plans to phase out diesel and gasoline-powered road vehicles.

For example, the UK wants to stop selling new diesel and petrol cars and trucks by 2030. From 2035, all new cars and trucks must be free of exhaust emissions. European Union – which the UK leaves on January 31, 2020 – are pursuing similar goals.

As the number of electric vehicles on our roads increases, competition to develop factories capable of producing EV batteries on a scale is increasingly fierce, with companies like Tesla and VW finding ways to establish a foothold in this field.

In a statement released Tuesday, Northvolt CEO and co-founder Peter Carlsson – who previously worked for Tesla – was optimistic about the future.

“The combination of political decision-making, a firmer customer commitment to the transition to electric vehicles, and rapidly increasing consumer demand for cleaner products, has created a storm,” he said. perfect for electrification.”

According to the International Energy Agency, electric vehicle sales will reach 6.6 million units in 2021. In the first quarter of 2022, electric vehicle sales reached 2 million units, up 75% from the first three months of the year. 2021.

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