Swedish battery manufacturer Northvolt makes a $14 billion form from VW

Northvolt, the Swedish battery manufacturer which raised up to $1 billion in financing from speculators led by Goldman Sachs and Volkswagen back in 2019, has signed a massive $14 billion battery order containing VW for the next 10 years.

The big buy clears up some questions relating to where Volkswagen will be revealing batteries for its huge compel into electric vehicles, which may see the automaker reach production role of 1. 5 million utility lines vehicles by 2025.

The deal will see Northvolt become the enhance your budget lead supplier for pda batteries cells for Volkswagen Audience in Europe, but will at the same time involve the German automaker increasing its equity possession of Northvolt.

As part of the cooperation agreement, Northvolt’s gigafactory while Sweden will be expanded plus Northvolt agreed to sell some joint venture share in Salzgitter, Germany to Volkswagen as the car maker looks to annoy its battery manufacturing work across Europe, the companies cited.

The binding agreement between Northvolt and VOLKSWAGEN brings the Swedish solar battery maker’s total contracts to positively $27 billion in the twenty-four since it raised its major $1 billion cash haul.

“Volkswagen is a very important investor, customer and companion on the journey ahead and we will continue to work hard with the end goal of providing them with these greenest battery on the planet that they rapidly expand their fleet of electric vehicles, ” assumed Peter Carlsson, the co-founder and chief executive of Northvolt, in a statement.

Northvolt’s other partners and customers include ABB, OF HIGH QUALITY Group, Scania, Siemens, Vattenfall, and Vestas. Together most of these firms comprise some of the main manufacturers in Europe.

Back in 2019, the brand said that its cell creating capacity could hit 10 Gigawatt hours and that completely sold its capacity to some sort of tune of $13 billion dollars through 2030. That means that our Volkswagen deal will consume a significant portion of expanded catalogog.

Founded Carlsson, a former executive at Tesla, Northvolt’s battery business seemed to be intended to leapfrog the European Union to be able to direct competition with Asia’s largest battery manufacturers — Samsung, LG Chem, as well as , CATL.

Back when the company property announced its $1 billion money spent round, Carlsson had said that Northvolt would need to build up to150 gigawatt hours of ability to hit targets for. 2030 electric vehicle sales.

The plant in Sweden is expected to hit however 32 gigawatt hours connected production thanks, in part returning to backing by the  Swedish pension fund firms AMF and Folksam and IKEA-linked IMAS Foundation, in addition to the substantial financial partners Volkswagen to Goldman Sachs.

Northvolt has had a busy quarter or so. Earlier in March raybestos announced the acquisition of your current Silicon Valley-based startup internet business} Cuberg.

Which is acquisition gave Northvolt a very foothold in the U. ‘s. and established the company’s advanced technology center.

The acquisition also can bring Northvolt a window in the birthday gift newest battery chemistry that’s being touted as a saving grace for the industry — lithium traditional batteries .

Cuberg rotated out of Stanford University assistance programs were 2015 to commercialize what are the company called its next-generation battery combining a liquid solution electrolyte with a lithium combination anode. The company’s clients include Boeing, BETA Technologies, Ampaire, and VoltAero that’s why was backed by Boeing HorizonX Ventures, Activate. org, any California Energy Commission, unquestionably the Department of Energy and the TomKat Center at Stanford.

Cuberg’s cells bring 70 percent increased range and also capacity versus comparable lithium ion cells designed for electric aeronautics applications. The two companies really hope that they can apply the methods to Northvolt’s automotive and as a result industrial product portfolio aided by the ambition to industrialize units in 2025 that go beyond 1, 000 Wh/L, even while meeting the full spectrum of a automotive customer requirements, according to a statement.

“The Cuberg team has shown advanced ability to develop world-class tech, proven results and a first-rate customer base in a lean so efficient organization, ” talked about Peter Carlsson, CEO furthermore Co-Founder, Northvolt in a words. “Combining these strengths with this capabilities and technology related to Northvolt allows us to make a great deal of improvements in both performance and thus safety while driving down selling price even further for next-generation electrical power cells. This is critical for increasing the shift to fully energy vehicles and responding to yourwants of the leading automotive retailers within a relevant time frame. ”

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