Swedish battery manufacturer Northvolt said Tuesday it has raised $1.2 billion in convertible notes to finance its North American and European expansion, Kallanish reports.

The Investment Management Corporation of Ontario (IMCO), BlackRock and Canada Pension Plan Investment Board (CPP Investments) have led the funding, which was an extension of the $1.1 billion convertible note signed in July 2022. OMERS, a long-term financial partner of the company, also made its third “major” investment in the company.

To date, the battery maker has raised $2.3 billion in convertible notes and over $9 billion in equity and debt. In addition to so-called dark green funds, the company has also attracted investment from several companies including carmaker Volkswagen Group.

“We are receiving significant interest from capital markets to support our mission. The commitment to global decarbonisation is strong, and these milestones reinforce our position to meet the massive demand for sustainable battery solutions both in Europe and North America,” comments ceo Peter Carlsson.

Despite finding a “committed group of investors,” chief financial officer Alexander Hartman emphasises resources at public and private levels, should be mobilised at an “unprecedented scale” to keep global warming below 1.5°C. “There is a long road ahead if Europe and North America are to reach their full potential as leaders of the energy transition,” he adds.

With over $55 billion in orders, Northvolt is ramping up production at its flagship Northvolt Ett gigafactory in Skellefteå, Sweden, and at the Northvolt Dwa in Gdańsk, Poland. It is building a battery recycling plant adjacent to Skelelfteå and developing other projects in Sweden, Germany and Portugal.

Northvolt Cuberg in California, US is working to commercialise batteries based on a proprietary liquid electrolyte technology with a lithium metal anode. The high-performance lithium metal cells are said to deliver over 70% higher range and capacity compared to lithium-ion cells designed for high-rate electric aviation. The plan is to start at-scale production in 2025, although details on a potential gigafactory on the other side of the Atlantic are yet to be disclosed.

The manufacturer also announced its Polish factory has assembled its first energy storage system (ESS) as part of its commissioning process. Battery systems had been produced at the small-scale facility since 2019, but the company is now starting a new 25,000-square-metre plant that assembles cells into battery systems for energy storage and industrial applications. Commercial deliveries are slated for later in the year.