UniCredit contributes to the financing of Europe's first and largest factory producing lithium-ion batteries for electric cars
- Northvolt complets a $1.6 billion debt raise to support the development of gigafactories in Sweden and Germany
- Northvolt aims to secure 50 percent of its raw material requirements from recycled batteries to deliver the world’s greenest lithium-ion battery with a minimal CO2 footprint
- UniCredit is playing a key role in the structuring of the loan, Northvolt is being serviced in the Corporate & Investment Banking division by UniCredit Bank Austria
- Debt raise provided by a consortium of commercial banks, pension funds and public financial institutions
The Swedish company Northvolt, founded in 2017 by two former Tesla employees, is raising a loan of $1.6 billion to build a gigafactory for lithium-ion batteries, primarily for electric cars. The loan was provided by a consortium of commercial banks, including UniCredit, pension funds and public financial institutions. As Mandated Lead Arranger UniCredit is playing a key role in the structuring of the loan, Northvolt is being serviced in the Corporate & Investment Banking division by UniCredit Bank Austria.
"With the new start after the Corona crisis, we now have the unique opportunity to join forces and transform the economy into a sustainable, climate-friendly system," says Günter Schubert, UniCredit Bank Austria Management Board member responsible for Corporate & Investment Banking. "Banks bear a special responsibility in this respect: with our business decisions we can create a leverage effect that is far greater than in any other industry. And with our participation in the financing of these projects for the environmentally friendly production of batteries, we are heading in exactly the right direction".
Northvolt raised above $3 billion in both equity and debt to support the development of two gigafactories for lithium ion battery cell production: Northvolt Ett in Skellefteå, Sweden, and Northvolt Zwei in Salzgitter, Germany. The company is also making significant investments in battery cell technology, process development and recycling at the recently established industrialization factory, Northvolt Labs, in Västerås, Sweden.
Northvolt Ett, with a potential annual output of 40 GWh, is under construction and scheduled for start of production in 2021. In parallel, the permitting process is underway for Northvolt Zwei, which is being established as a joint venture together with the Volkswagen Group and scheduled to commence operations in 2024 with a potential output of more than 20 GWh. The recycling target will be achieved through establishing a full-scale recycling facility at Northvolt Ett.
The debt financing package is provided by a group of commercial banks and pension funds: APG, BNP Paribas, Danske Bank, Danica Pension, IMI – Intesa Sanpaolo, ING, KfW IPEX-Bank, PFA Pension, SEB, Siemens Bank, SMBC, Société Générale, Swedbank and UniCredit, as well as the European Investment Bank, the Nordic Investment Bank and the Export-Import Bank of Korea (KEXIM). The loan is structured with certain guarantees from Euler Hermes (transaction subject to final approval), Nippon Export and Investment Insurance (NEXI) and BPI France.
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