Rare Earth AdvisoryNEWS
Northvolt raises $1.6 billion in debt financing
through consortium of global financial institutions
Interesting to see Northvolt funding progress with USD1.6bn debt raised through a consortium of world-class financial institutions. This puts the total amount raised so far at USD3bn in equity and debt, meaning both Li-ion gigafactories projects are well on track: Northvolt Elt, Skellefteå (100% Northvolt / phase I: USD2bn capex, 16GW capacity/ start-up: 2021); Northvolt Zwei, Salzgitter (50% Northvolt-50% VW/ phase I: USD2bn capex, 16GW capacity/ start-up: 2024).
Even more interesting to see Northvolt ambitious target to reach 25% MS in Europe by 2030 (c.150 GW capacity) matched by the group’s intention to secure 50% of its raw material requirements from recycled batteries by establishing a full-scale recycling facility at Northvolt Ett. We look for more details on this essential part of the project, that meets our call for Europe to promote vertically integrated EV supply chain projects. Committed battery cell capacity, i.e. 32GW (possibly >60GW) means Northvolt Ett battery recycling facility would have >38kt capacity (possibly >70kt), i.e. way above Hoboken (Belgium, 100%-Umicore), one of the world’s largest dedicated recycling installations for Li-ion/NiMH batteries with 7kt.