The Energy Storage Report 2024

Now available to download, covering deployments, technology, policy and finance in the energy storage market

Canadian pension fund IMCO invests US$400 million in Northvolt

LinkedIn
Twitter
Reddit
Facebook
Email

The Investment Management Corporation of Ontario (IMCO) has bought convertible notes worth US$400 million in European lithium-ion gigafactory firm Northvolt.

IMCO’s investment was announced today (20 June) and sees the pension fund become the latest in a long line of investors in Northvolt totalling over US$8 billion in debt and equity.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The convertible note is a debt instrument that can convert to equity on pre-agreed terms. Northvolt raised a comparatively larger, US$1.1 billion one this time last year, talking of “cautious capital markets” in comments provided to Energy-Storage.news.

Northvolt is building numerous lithium-ion battery production facilities, including cell production, cathode production, recycling and an energy storage system (ESS) assembly facility. The company completed construction on the latter, in Poland, earlier this year, and started shipping its first battery cells from Sweden last year.

The company is targeting mainly the EV market as well as the ESS space, and has also been developing more niche solutions like large EVs (trucks etc) as well as aviation battery systems.

The announcement did not mention an IPO, but there are strong rumours the company has been in discussions this year about a public listing which could value it at more than US$20 billion.

There were also reports in May that Northvolt is eyeing Canada as a possible site for its first North American gigafactory, which Energy-Storage.news has asked the company to comment on and will update this article in due course.

The company’s management said in November communicated some doubts over whether its third gigafactory, Northvolt Drei in Germany, would go ahead, due to high energy prices. National subsidies agreed since have helped the company ultimately decide to press on according to reports.

This is within the context of the US’ Inflation Reduction Act drawing investment interest away from Europe’s lithium-ion ecosystem, as reported extensively by Energy-Storage.news. As of very recently, the US now has more planned production capacity than Europe, a far cry from the situation one year ago.

The Northvolt deal is not IMCO’s first foray into energy storage in Europe. It acquired UK developer Pulse Clean Energy (called Green Frog Power at the time), one of the most active in the country’s battery storage space, in 2021.

Read Next

April 25, 2024
Morrow Batteries, one of several startups committed to producing lithium-ion batteries at gigawatt-hour scale from factories in Scandinavia, has secured a 5.5GWh offtake deal.  
April 25, 2024
Developer Enerside Energy has sold a project combining agrivoltaics (agriPV) and a battery energy storage system (BESS) in Italy to Chint Solar.
April 24, 2024
Dublin-listed compressed air energy storage (CAES) project developer Corre Energy has hired investment bank Rothschild to explore the possibility of private investment in the firm.
April 24, 2024
The fifth edition of the DNV Battery Scorecard takes a deep dive into the performance and safety metrics of electric vehicle (EV) and energy storage system (ESS) battery cells.
Premium
April 23, 2024
The energy storage arm of Canadian Solar said the technology ‘has more complexity than solar’ when it comes to nearshoring manufacturing away from China, and local cell manufacturing could be part of the long-term strategy to leverage domestic content incentives.

Most Popular

Email Newsletter