Investment Management Corporation of Ontario fuels Swedish battery start-up's international expansion plans
Swedish battery start-up Northvolt has received a $400 million investment from one of Canada's largest pension groups, the Investment Management Corporation of Ontario (IMCO). The investment aims to support Northvolt's expansion strategy, including the construction of an additional factory in Germany.
IMCO, responsible for managing approximately $73 billion in pensions from the public sector, announced its purchase of convertible loan notes in Northvolt this week.
Northvolt has been actively seeking funding to facilitate its expansion and is considering a potential stock market listing next year.
“We’re excited to partner with IMCO’s fundamental equities and global infrastructure teams to build the future of clean energy together,” said Alexander Hartman, chief financial officer of Northvolt.
“This investment fuels our expansion efforts, allowing us to further extend our global footprint and drive sustainable progress in our mission to deliver the world’s greenest battery.”
The recent funding round is just one of several that Northvolt plans to undertake as part of its global expansion strategy. The company has been in discussions to raise approximately $5 billion in equity financing with a potential deal expected later this year, according to a report from the Financial Times.
In addition to the $1.1 billion raised through convertible notes in July of last year, Northvolt has accumulated a total of $8 billion in debt and equity financing.
Northvolt is also exploring the possibility of a larger stock market listing, potentially valuing the company at $20 billion.
Northvolt has plans to construct a second facility in Gothenburg, Sweden, in collaboration with Volvo. Last month, the company chose Germany as the location for its third plant.
The deal with Northvolt marks IMCO's largest investment in Europe thus far.
