Northvolt raises $5B to expand circular gigafactory

Circular economy Storage

Sweden – Northvolt has secured a historic $5 billion non-recourse project financing, marking the largest green loan raised in Europe to date.

The funds are dedicated to expanding Northvolt Ett in northern Sweden, with a particular focus on advancing cathode production, cell manufacturing, and the adjacent recycling plant, Revolt Ett.

The financing package serves a dual purpose. Firstly, it supports the expansion of Northvolt Ett’s crucial operations, reinforcing its position as a leading player in the battery production landscape. Secondly, it facilitates the growth of Revolt Ett, a recycling plant with a unique approach. The facility is designed to recover battery-grade metals with a carbon footprint 70% lower than traditionally mined raw materials, introducing a fully integrated, circular battery production setup unprecedented outside of Asia.

The company aims to establish a circular economy by recovering and reusing battery-grade metals, reducing environmental impact and creating a closed-loop system for battery production.

Financial backing and support

The financing includes the refinancing of a $1.6 billion debt package from July 2020 and is supported by long-term offtake contracts exceeding $55 billion. Partners such as BMW, Scania, Volvo Cars, and Volkswagen Group have committed to these contracts, emphasizing the industry’s confidence in Northvolt’s capabilities.

A consortium of 23 commercial banks, along with the European Investment Bank (EIB) and the Nordic Investment Bank (NIB), are providing the financing. Notably, The Swedish National Debt Office, Euler Hermes, the Export-Import Bank of Korea (KEXIM), Nippon Export and Investment Insurance (NEXI), and the Korea Trade Insurance Corporation (K-Sure) are contributing with certain guarantees and direct funding.

This financing represents the inaugural loan through Northvolt’s Green Finance Framework established in 2023. The company’s dedication to sustainability and the circular economy has earned it the highest ‘dark green’ rating from the external rating company CICERO.


With this financing, Northvolt has now secured over $13 billion in equity and debt, solidifying its expansion plans across Europe and North America. The facilities benefiting from this financial boost include Northvolt Ett (Skellefteå, Sweden), Northvolt Dwa (Gdansk, Poland), Northvolt Drei (Heide, Germany), Northvolt–Volvo Cars joint venture gigafactory ‘NOVO’ (Gothenburg, Sweden), Northvolt Fem (Borlänge, Sweden), Northvolt Cuberg (San Leandro, US), and the recently announced Northvolt Six (Montreal, Canada).

Wim Raaijen
I am a creative publisher, editor in chief, writer, vlogger and moderator with a journalistic and philosophic based view. Trying to re-invent the concept of publishing, based on platforms and partners, instead of separated media and advertisements. I am interested in industrial subjects like transition, sustainability, safety, energy efficiency, innovation and responsibility.