Published On: Tue, Mar 16th, 2021

Swedish battery manufacturer Northvolt receives a $14 billion sequence from VW

Northvolt, a Swedish battery manufacturer that lifted $1 billion in financing from investors led by Goldman Sachs and Volkswagen behind in 2019, has sealed a large $14 billion battery sequence with VW for a subsequent 10 years.

The large buy clears adult some questions about where Volkswagen will be removing a batteries for a outrageous pull into electric vehicles, that will see a automaker strech prolongation ability of 1.5 million electric vehicles by 2025.

The understanding will not usually see Northvolt turn a vital lead retailer for battery cells for Volkswagen Group in Europe, though will also engage a German automaker augmenting a equity tenure of Northvolt.

As partial of a partnership agreement, Northvolt’s gigafactory in Sweden will be stretched and Northvolt concluded to sell a corner try share in a Salzgitter, Germany bureau to Volkswagen as a automobile builder looks to build adult a battery prolongation efforts opposite Europe, a companies said.

The agreement between Northvolt and VW brings a Swedish battery maker’s sum contracts to $27 billion in a dual years given it lifted a large $1 billion income haul.

“Volkswagen is a pivotal investor, patron and partner on a tour forward and we will continue to work tough with a idea of providing them with a greenest battery on a world as they fast enhance their swift of electric vehicles,” pronounced Peter Carlsson, a co-founder and arch executive of Northvolt, in a statement.

Northvolt’s other partners and business embody ABB, BMW Group, Scania, Siemens, Vattenfall and Vestas. Together these firms contain some of a largest manufacturers in Europe.

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Back in 2019, a association pronounced that a dungeon prolongation ability could strike 16 gigawatt hours and that it had sole a ability to a balance of $13 billion by 2030. That means that a Volkswagen understanding will eat adult a poignant apportionment of stretched product lines.

Founded by Carlsson, a former executive during Tesla, Northvolt’s battery business was dictated to leapfrog a European Union into approach foe with Asia’s largest battery manufacturers — Samsung, LG Chem and CATL.

Back when a association initial announced a $1 billion investment round, Carlsson had pronounced that Northvolt would need to build adult to150 gigawatt hours of ability to strike targets for 2030 electric car sales.

The plant in Sweden is approaching to strike during slightest 32 gigawatt hours of production, interjection in partial to subsidy by a Swedish grant account firms AMF and Folksam and Ikea-linked IMAS Foundation, in serve to a large financial partners Volkswagen and Goldman Sachs.

Northvolt has had a bustling few months. Earlier in Mar a association announced a merger of a Silicon Valley-based startup association Cuberg.

That merger gave Northvolt a foothold in a U.S. and determined a company’s modernized record center.

The merger also gives Northvolt a window into a newest battery chemistry that’s being touted as a savior for a attention — lithium steel batteries.

Cuberg spun out of Stanford University behind in 2015 to commercialize what a association called a next-generation battery, mixing a glass electrolyte with a lithium steel anode. The company’s business embody Boeing, BETA Technologies, Ampaire and VoltAero, and it was corroborated by Boeing HorizonX Ventures,, a California Energy Commission, a Department of Energy and a TomKat Center during Stanford.

Cuberg’s cells broach 70% increasing operation and ability contra allied lithium ion cells designed for electric aviation applications. The dual companies wish they can request a record to Northvolt’s automotive and industrial product portfolio with a aspiration to industrialize cells in 2025 that surpass 1,000 Wh/L, while assembly a full spectrum of automotive patron requirements, according to a statement.

“The Cuberg group has shown well-developed ability to rise world-class technology, proven formula and an superb patron bottom in a gaunt and fit organization,” pronounced Peter Carlsson, CEO and co-founder, Northvolt in a statement. “Combining these strengths with a capabilities and record of Northvolt allows us to make poignant improvements in both opening and reserve while pushing down cost even serve for next-generation battery cells. This is vicious for accelerating a change to entirely electric vehicles and responding to a needs of a heading automotive companies within a applicable time frame.”

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