Swedish battery developer and manufacturer Northvolt AB has actually raised $2.75 billion in capital as it prepares to ramp up to an annual production capacity of 150 GWh in Europe by 2030.

The financing round — — Northvolt’s biggest thus — far — was co-led by existing financiers Goldman Sachs and Volkswagen, and new financiers consisting of the Swedish pension funds AP1-4 and OMERS, one of Canada’s biggest pension. AMF, ATP, Baillie Gifford, Baron Capital Group, Bridford Investments Limited, Compagnia di San Paolo through Fondaco Growth, Cristina Stenbeck, Daniel Ek, IMAS Structure, EIT InnoEnergy, Norrsken VC, PCS Holding, Scania and Stena Metall Finans likewise participated in the raise.

Volkswagen’s investment came to EUR500 million ($620 million), the OEM stated Wednesday, preserving its 20% stake in the battery producer.

CNBC reported that Northvolt’s assessment now stands at $11.75 billion. The business declined to discuss the particular assessment figure to TechCrunch.

Northvolt has already scored significant deals with car manufacturers like Volkswagen and BMW. In July 2020, the business tattooed a $2.3 billion contract with BMW for batteries; more just recently, in March, Volkswagen put in a $14 billion order over a 10-year period. The two offers bring Northvolt’s overall contracts to $27 billion. Other significant consumers consist of Swedish sturdy truck producer Scania and energy storage company Fluence.

This brings Northvolt’s total raised to more than$6.5 billion because the business was founded in 2016.

The maker’s very first gigafactory in SkellefteĆ„, Sweden, will be expanded from 40 GWh to 60 GWh, in part due to increased demand from the Volkswagen order, the company stated in a statement. That facility will begin production later on in 2021. Northvolt’s overarching plan is to ramp up to a minimum of 150 GWh of yearly battery production across Europe by 2030.

To fulfill this enormous target, the business is considering at least two extra gigafactories, including one in Germany. Northvolt is one of Europe’s biggest battery makers. Company investor EIT InnoEnergy said in a statement Wednesday that the funding is crucial to Europe attaining its Green Deal objectives, that includes developing a European battery value chain.

The Swedish company intends to identify itself from other battery manufacturers by producing batteries using renewable energy for the production process. Northvolt states its batteries have an 80% lower carbon footprint than those made with coal power. It likewise recycles batteries internal and recycles the raw products in its production process.

Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.