CDPQ invests US $150M in Northvolt AB

CPE News

CPE News (11.16.2023) – CDPQ announced that it is investing US $150 million in Northvolt AB, a leading integrated battery platform focused on the R&D, manufacturing and recycling of sustainable battery cells and systems.

This financing, in the form of convertible debt in the parent company located in Sweden, will contribute to the realization of the Northvolt Six project in Québec announced this fall.

In September 2023, Northvolt announced that it will establish a fully integrated lithium-ion battery gigafactory, just outside of Montreal. The factory, named Northvolt Six, will host 60 GWh of annual cell manufacturing capacity, with adjacent facilities for cathode active material production and battery recycling, enabling fully circular production at site.

CDPQ investment is addition to the US $2.3 billion raised by Northvolt in convertible notes in July and August 2023.

Investors include Investment Management Corporation of Ontario (IMCO), Canada Pension Plan Investment Board (CPP Investments), OMERS, Goldman Sachs Asset Management, AP funds 1-4, Folksam Group, ATP, Volkswagen Group, AMF, Ava Investors, IMAS Foundation, Baillie Gifford, Swedbank Robur, PCS Holding, Olympia Group, TM Capital, Compagnia di San Paolo through Fondaco Growth, East Innovate, ADQ, GIC, Chow Tai Fook Enterprises (CTFE) and J. Safra Sarasin.

Established in 2016 in Stockholm, Sweden, Northvolt is a premium supplier of sustainable, high-quality battery cells and systems. Northvolt battery cells are currently designed and developed at Northvolt Labs in Västerås, Sweden, and Northvolt Cuberg in San Leandro, California, US. Battery cell manufacturing is ramping up at Northvolt Ett gigafactory, in Skellefteå, Sweden, which will be joined by an adjacent giga-scale recycling plant, Revolt Ett, due to start operations later this year.

photo credit: Northvolt AB

News Release

CDPQ invests in Northvolt

MONTRÉAL, Nov. 16, 2023 /CNW/ – CDPQ announces that it is investing around CAD 200 million (USD 150 million) in Northvolt AB, a leading integrated battery platform focused on the R&D, manufacturing and recycling of sustainable battery cells and systems.

This financing, in the form of convertible debt in the parent company located in Sweden, will contribute to the realization of the Northvolt Six project in Québec announced this fall.

“The battery value chain is a high-interest sector for CDPQ, and with a favourable impact on the energy transition, we believe it will experience strong growth over the next decade, which we expect will benefit our depositors,” said Kim Thomassin, Executive Vice-President and Head of Québec at CDPQ. “This sector is promising for Québec’s economic development and we want to contribute to that.”

“CDPQ has been involved in the process for several months, actively contributing in establishing our future plant in Québec. We are delighted to partner with such a major, long-term institutional investor that is committed to Québec’s economic and energy development,” added Paolo Cerruti, Co-Founder of Northvolt and CEO of Northvolt North America. “Northvolt continues to integrate into the economic and social fabric of Québec, and the CDPQ’s investment in Northvolt is further evidence of this.”

With proven technology validated by its customers, who are major sustainable mobility manufacturers, Northvolt operates Europe’s first homegrown gigafactory in Sweden and is currently developing other projects to expand in Europe, in addition to the project announced recently in Québec.

Groundwork for the construction of the Northvolt Six facility—a fully integrated battery factory in Saint-Basile-le-Grand and McMasterville, outside of Montréal—is expected to start by the end of 2023. When fully built, the factory will have an annual production capacity of up to 60 GWh, with facilities to manufacture cathode active material, cells and recycled materials, effectively closing the battery loop on site.

ABOUT CDPQ

At CDPQ, we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public pension and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at June 30, 2023, CDPQ’s net assets totalled CAD 424 billion. For more information, visit cdpq.com, consult our LinkedIn or Instagram pages, or follow us on X.

CDPQ is a registered trademark owned by Caisse de dépôt et placement du Québec and licensed for use by its subsidiaries.

ABOUT NORTHVOLT

Northvolt was established in 2016 in Stockholm, Sweden. Pioneering a sustainable model for battery manufacturing, the company has received $55 billion in orders from key customers, including BMW, Fluence, Scania, Volvo Cars and Volkswagen Group. The company is currently delivering batteries from its first gigafactory Northvolt Ett, in Skellefteå, Sweden and from its R&D and industrialization campus Northvolt Labs, in Västerås, Sweden, supported by over 5000 employees in Sweden, Germany, Norway, Poland, Portugal, the US and Canada.

For more information:
KATE MONFETTE
Director, Media Relations
CDPQ
+ 1 438 525-2520
kmonfette@cdpq.com

LAURENT THERRIEN
Director, Communications and Public Affairs
Northvolt
press@northvolt.com

SOURCE CDPQ