Northvolt Secures Record $5 Billion Green Loan for Global Expansion

The Swedish battery maker's expansion is a significant step in Europe's energy transition, aiming to reduce reliance on Asian and US markets.

Swedish battery maker Northvolt has secured a $5 billion green loan, the largest in Europe, to expand its operations across Sweden, Poland, Germany, the United States, and Canada.
The funding will be used to expand Northvolt's first cell production site in Sweden and its recycling plants, which recover battery-grade metals with a 70% lower carbon footprint than mined raw materials.
The loan comes from 23 commercial banks, the European Investment Bank, and the Nordic Investment Bank, marking a significant milestone for Europe's energy transition.
Northvolt has secured over $55 billion in orders from automakers including BMW, Volvo, Scania, and Volkswagen, and is reportedly preparing for an initial public offering that could value it at more than $20 billion.
Northvolt's expansion is key to Europe's ambitions to establish an EV battery supply chain that can reduce reliance on and compete with the markets in Asia and the US.