Northvolt's new financing is for the ongoing expansion in Skellefteå.
According to Northvolt's press release, the deal is "the largest green loan raised in Europe to date".
In contrast to a conventional loan, a green loan has a lower interest rate but comes with increased expectations for the borrower to provide detailed reports on their efforts towards sustainability.
It amounts to five billion dollars, over 51 billion Swedish kronor, of which $1.6 billion is a refinancing of a loan package taken out in July 2020.
The funds will be used for the continued expansion of Northvolt Ett in Skellefteå - cathode production and cell manufacturing - and the establishment of the Revolt One recycling plant, which is also located in the industrial area. According to the press release, Revolt One is currently being commissioned.
"I am proud to see how our ambition to mass produce the world's greenest battery is attracting top-tier financial partners as global capital seeks to invest in electrification and climate change mitigation," says Emma Nehrenheim, Northvolt's chief environmental officer, who is also the person behind the Revolt One recycling factory.
"The facilities recycle battery grade metals with a carbon footprint that is 70 percent lower than virgin raw materials from mining, creating a fully integrated circular battery production that has not existed outside of Asia," Northvolt writes of Revolt One.
Behind this new funding is a group of 24 commercial banks, as well as the European Commission through the European Investment Bank (EIB) and the Nordic Investment Bank (NIB). The commercial banks include BNP Paribas, JP Morgan and Citibank - but also Swedish SEB and Swedbank.
Peter Carlsson, CEO of Northvolt and one of the founders, announced on Tuesday morning that the company has now secured more than 50 billion kronor for expansion, of which approximately one third is a refinancing.
This fresh financing package means that Northvolt has now secured more than $12 billion, close to 125 billion kronor, in equity and debt to enable its expansion in Europe and North America with a total of seven facilities, including Novo, a joint venture with Volvo.