(Bloomberg) — The latest unicorn to emerge from Sweden’s booming battery industry is an energy-storage developer that counts major telecommunications firms such as Vodafone Group Plc and Verizon Communications Inc among its client roster.
The valuation of just over $1 billion for Polarium Energy Solutions AB follows a 10% stake sale in the company to Swedish pension fund AMF, which occurred alongside its latest funding round.
AMF, one of the country’s biggest pension funds, has invested 955 million kronor ($96.6 million) in Stockholm-based Polarium, it said Tuesday. The funds will help go into development as the company, founded in 2015, prepares for an initial public offering.
Polarium should be ready for a stock market listing this year and will take a decision “whenever such a move might be right for the company,” Chief Executive Officer and Founder Stefan Jansson said in an interview. No decision has yet been made, he said.
The company provides back-up lithium-ion power solutions to telecom and commercial sectors, helping them to reduce their reliance on diesel generators to reduce emissions. Vargas Holding, backed by Northvolt AB Chairman Carl-Erik Lagercrantz and private equity veteran Harald Mix, remains the largest owner in the company.
The duo have also initiated H2 Green Steel, a green steel startup building a plant for fossil-free steel production in Sweden’s north.
“It was in fact at a board meeting at Polarium that the idea of Northvolt was born,” Jansson said.
Polarium has about 700 employees globally and generated revenues of 1.1 billion kronor last year with earnings before interest, tax and amortization of 83 million kronor. Revenues are expected to double this year, Jansson said.
Last week Polarium opened its third lithium-ion battery assembly plant in Cape Town, South Africa. Other facilities are located in Mexico and Vietnam.
JPMorgan AG acted as sole placement agent to Polarium.
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