The Investment Management Corporation of Ontario (IMCO) has committed to invest $400 million in Northvolt, a European integrated battery platform specialising in sustainable battery cells and systems through research and development, manufacturing, and recycling, reports Financial Times.
The funds, allocated from IMCO’s Fundamental Equities and Global Infrastructure funds, will facilitate Northvolt’s global expansion plans, aligning with IMCO’s commitment to establishing a highly sustainable battery supply chain.
The investor’s strategy focuses on selectively investing in companies and collaborating with management teams over the long term to unlock shareholder value. IMCO is embarking on a drive to invest more in continental Europe and Britain to diversify its assets away from North America.
“This innovative collaboration between IMCO’s Fundamental Equities and Global Infrastructure teams is paving the way for meaningful capital deployment towards the energy transition,” said Rossitsa Stoyanova, Chief Investment Officer of IMCO. “With this investment, we are tangibly delivering on our Climate Action Plan, while also strategically managing material ESG risks, ultimately generating sustainable long-term value for our clients.”
$1.1B to expand European factories
In 2022, the Swedish battery manufacturer whose customers include BMW and Volkswagen, has signed a $1.1 billion convertible note as battery demand for electric vehicles is on the rise. The round saw participation from AMF, AP funds 1-4 (via the co-owned company 4 to 1 Investments), ATP, Ava Investors, Baillie Gifford, and many others.
Sustainable battery production
Northvolt’s initial gigafactory, located in northern Sweden, has already commenced sustainable battery production utilising fossil-free electricity. Additional gigafactories in the future will support Northvolt’s ambitious target of achieving 150GWh of annual production capacity by 2030.
The company’s vision involves providing low carbon footprint batteries designed for applications in stationary energy storage systems, electric vehicles (EVs), industrial systems, and energy storage systems.
With a strong emphasis on clean energy manufacturing, regional sourcing, and closed-loop circularity through recycling, Northvolt strives to deliver the most sustainable batteries in the industry.
Builds Europe’s largest battery cell factory
Founded in 2016 in Stockholm, Peter Carlsson and Paolo Cerruti, Northvolt is on a mission to develop the world’s greenest battery cell and establish a European supply of batteries to enable the future of energy. As per the company, the largest battery cell factory in Europe will be set by 2024 and it will have a capacity of at least 32GWh, which is equivalent to batteries for 600,000 EVs each year.
In addition, through its large-scale recycling program, Northvolt intends to enable 50% of its raw material requirements to be sourced from recycled batteries by 2030.