Spotify CEO backs Tesla rival Northvolt in $600 million funding spherical
Stockholm-headquartered Northvolt introduced Tuesday that it has raised $600 million in fairness funding from Ek, Swedish businesswoman Cristina Stenbeck, and institutional traders like Baillie Gifford, Baron Capital Group, Bridford Investments Restricted, Norrsken VC and PCS Holding. Present Northvolt shareholders Goldman Sachs Service provider Banking Division, IMAS Basis, Scania and Volkswagen have additionally participated within the funding spherical.
The funding within the Tesla rival comes lower than per week after Ek pledged to take a position 1 billion euros ($1.2 billion) of his personal wealth into “moonshot” bets in Europe. Based on Forbes, Ek is value $3.7 billion, indicating he is allocating roughly a 3rd of his personal wealth to fund European tech.
“I wish to do my half; everyone knows that one of many best challenges is entry to capital,” Ek mentioned, including he wished to realize a “new European dream.”
“I get actually annoyed once I see European entrepreneurs giving up on their wonderful visions promoting early on to non-European corporations, or when a number of the most promising tech expertise in Europe leaves as a result of they do not really feel valued right here,” Ek mentioned on the Slush tech convention final Thursday. “We’d like extra tremendous corporations that increase the bar and might act as an inspiration.”
Based in 2016, Northvolt is aiming to develop the world’s greenest lithium-ion battery. The corporate, arrange by two former Tesla executives, sees its batteries getting used to energy new electrical vehicles constructed by a few of Europe’s greatest automotive producers.
It’s within the strategy of constructing a Gigafactory to supply the batteries in Skelleftea, northern Sweden, and it expects to begin manufacturing in 2021.
The corporate, which already employs round 800 folks, mentioned it should use the brand new funding to extend the variety of battery cells and methods it will probably produce. It’s going to additionally use the cash to double the scale of its labs and create a “giga-scale recycling facility” that is able to recycling lithium along with cobalt, nickel, manganese and different metals.
“We’re in the midst of a race to ascertain manufacturing capability in Europe, and I consider the businesses which are greatest at attracting expertise and capital, whereas scaling their blueprints the quickest, would be the most profitable,” mentioned Peter Carlsson, co-founder and CEO of Northvolt, in an announcement.
“With these world-class companions behind us, we now have created a strong basis to go on and execute our plans to allow large-scale manufacturing of inexperienced batteries in Europe.”
Final June, Northvolt raised $1 billion from Volkswagen, BMW, and others.
In July, it introduced it had raised $1.6 billon in debt by means of a consortium of economic banks, pension funds and public monetary establishments. That included a $350 million mortgage from the European Funding Financial institution, which is a publicly-owned establishment whose shareholders are the EU member states.
Additionally in July, BMW signed a 2 billion euro battery cell contract with Northvolt that may see Nortvolt’s batteries utilized in its upcoming electrical vehicles.