CEO overtakes Tesla rival Northvolt in $ 600 million funding round


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London – Spotify founder and chief executive Daniel Ek has invested in Sweden’s Battery Northvolt, which is building Gigafactory in the Lapland region of Sweden.

Stockholm-headquartered Northvolt announced on Tuesday that it had raised $ 600 million in equity funds from Eck, Swedish businessman Christina Steinbeck and equity institutional investors such as Bailey Gifford, Baron Capital Group, Bridgford Investment Ltd, Norseken VC and PCS Holding. Current Northvolt shareholders Goldman Sachs Merchant Banking Division, IMAS Foundation, Scania and Volkswagen have also participated in the funding round.

The investment in a Tesla rival comes less than a week after one promised to place its wealth of 1 billion euros ($ 1.2 billion) in Europe in “moonlight” bets. According to Forbes, Ek is worth $ 3.7 billion, indicating that he is allocating a third of his own funds to fund European technology.

“I want to do my part; we all know that one of the biggest challenges is access to capital,” he said, “wanting to achieve a new European dream.”

“I get really disappointed when I see the amazing vision that European entrepreneurs sell quickly to their non-European companies, or when some of the most promising tech talents in Europe leave, because they don’t feel valued here, “One said the slush technique conference last Thursday. “We need more super companies that can raise the bar and serve as an inspiration.”

Founded in 2016, Northvolt aims to develop the world’s greenest lithium-ion battery. The company, founded by two former Tesla executives, uses its batteries to power new electric cars manufactured by some of Europe’s largest automotive manufacturers.

It is in the process of building a gigafact to produce the battery in Skelftia, northern Sweden, and it hopes to begin production in 2021.

The company, which already employs about 800 people, said it would use the new funds to increase the number of battery cells and systems it could produce. It will use the money to double the size of its laboratories and create a “Giga-scale recycling facility” capable of recycling lithium in addition to cobalt, nickel, manganese and other metals.

“We are in the middle of a race to establish manufacturing capacity in Europe, and I believe companies that are best at attracting talent and capital, scaling their blueprints the fastest, will be the most successful.” Peter Carlson said. The founder and CEO of Northvolt, in a statement.

“With these world-class partners behind us, we have built a solid foundation to enable large-scale manufacturing of green batteries in Europe.

Northvolt is also applying for permission to establish a second Gigafacturing facility in Salzitter, Germany, and expects to begin operations in 2024.

Last June, Northvolt raised $ 1 billion from Volkswagen, BMW and others.

In July, it announced that it had raised $ 1.6 billion in loans through a consortium of commercial banks, pension funds and public financial institutions. This included a $ 350 million loan from the European Investment Bank, a publicly owned entity whose shareholders are members of the European Union.

Also in July, BMW signed a 2 billion euro battery cell contract with Northvolt, which would see the use of Nortvolt’s batteries in its electric electric cars.

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