Lithium-ion battery maker Northvolt has raised $2.75 billion in equity to expand capacity at the factory it is building in northern Sweden to meet increasing demand for electric cars.
Northvolt said the private placement, one of the biggest in Europe, was led by four Swedish pension funds and OMERS Capital Markets, alongside existing investors Goldman Sachs and Volkswagen, with other shareholders also participating.
Chief Executive Peter Carlsson told Reuters that while a stock market listing to raise more cash could be on the cards, there was currently no timetable for an initial public offering.
"We now have sufficient firepower for some time but over time with our growth ambition or financing need, to be in the public market is going to be required," he said in an interview.
Battery makers are scrambling to keep up with demand as carmakers switch to electric in order to reduce planet-warming carbon emissions. Global sales of electric vehicles are expected to rise by about 70% in 2021, after reaching nearly 2.5 million in 2020, research firm IHS Markit forecasts.