(Bloomberg) — Swedish battery-maker Northvolt AB has defied the market gloom surrounding startups by securing new funds at last year’s valuation of $12 billion, according to a person familiar with matter who asked not to be identified because the details are private.
The company said in a separate statement that it had signed a $1.1 billion convertible note to finance an expansion of its production capabilities in Europe. The new funds arrive as other high profile private companies in Sweden, such as Klarna Bank AB, have seen their valuations plummet amid a cooler climate for raising capital.
Investors participating in Northvolt’s latest round included Goldman Sachs Asset Management, Volkswagen AG, Baillie Gifford & Co. and Sweden’s AP Funds, according to the statement. The latest capital raise takes the battery-maker’s total equity and debt financing to nearly $8 billion since 2017, it said.
“The market is incredibly strong,” Northvolt Chief Executive Officer Peter Carlsson said Tuesday when asked about demand for electric-car components in an interview with Bloomberg Television. “While we see all these challenges around us, the green energy transition is continuing with full force.”
Production Rampup
Part of the proceeds will help Northvolt develop cathode material production, which the company says is a key component of its strategy to establish operations throughout the battery value chain. In May, the battery-maker became the first European firm to start commercial shipments to a carmaker.
“Our biggest challenge short-term is to keep focus on executing and getting products out, and show our customers we can deliver on time,” Carlsson said. Northvolt is also looking at opportunities that may arise in the US, the CEO added.
Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley & Co. acted as joint placement agents on the convertible note offering.
Representatives for Northvolt did not immediately respond when asked about the valuation.
Read More: BMW-Backed Northvolt Advances on $12 Billion Battery IPO Plan
(Updates with CEO comment in fourth paragraph.)
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