Linklaters advises Goldman Sachs Merchant Banking Division in connection with Northvolt’s US$600m equity capital raise to set up Europe’s first lithium-ion “gigafactory”

Linklaters has advised Goldman Sachs Merchant Banking Division in connection with its role as co-lead investor in Northvolt AB’s recent US$600m equity capital raise. This follows from our role advising Goldman Sachs Merchant Banking Division on the US$1 billion equity capital raise executed in June 2019 and the $1.6bn debt financing recently secured by Northvolt.

Northvolt is a European supplier of sustainable, high-quality battery cells and systems. Founded in 2016 to enable the European transition to a decarbonised future, the company has made swift progress in its mission to deliver the world’s greenest lithium-ion battery with a minimal CO2 footprint. The equity raises and debt financing will enable Northvolt to make further investments in the following key areas:

  • the development and construction of Europe’s first “gigafactory” for the manufacturing of lithium-ion batteries
  • increasing production capacity of battery cells and systems to support the goal of establishing 150 GWh of manufacturing output in Europe by 2030
  • expanding the Northvolt Labs Campus, where the company's R&D activities take place. Northvolt Labs is expected to double in size over the coming years in terms of investment and footprint
  • establishing a giga-scale lithium-ion battery recycling facility next to the Northvolt battery gigafactory. The facility will become the largest in the world with an initial capacity of 4 GWh, and the only large-scale facility in Europe capable of recycling lithium in addition to cobalt, nickel, manganese and other metals

Among Northvolt’s industrial partners and customers are ABB, BMW Group, Scania, Siemens, Vattenfall, Vestas and the Volkswagen Group.

Goldman Sachs Merchant Banking Division participated in the private placement together with Baillie Gifford, Volkswagen AG, Baron Capital Group, Bridford Investments Limited, Norrsken VC, PCS Holding, IMAS Foundation, Scania, and private investors Christina Stenbeck and Daniel Ek. 

Rasmus Kindlund, Partner, Private Equity said:

“Transactions like this demonstrate the significant value of Linklaters’ global reach and market leading sector knowledge. The ability to deploy Linklaters’ Nordic private equity expertise side by side with its Global Energy & Infrastructure practice was key to making this transaction a success for our client.”

Jeremy Gewirtz, Partner, Energy & Infrastructure said:

“The global energy transition has seen a surge in demand for electric vehicles and the batteries to power them. Investors are seeing opportunities in the electric vehicle battery value chain, and Northvolt is leading the way. This transaction is an example of an innovative equity and debt financing solution for a gigafactory. We are delighted that we were able to advise our client on their successful investment.”

The Linklaters team advising on the deal was led by partners Rasmus Kindlund (Stockholm, Private Equity), Jeremy Gewirtz (London, Energy & Infrastructure), and Fredrik Lindqvist (Stockholm, Mainstream Corporate). The team included managing associates Francesca Matthews (London, Energy & Infrastructure), Johan Sahlin (Stockholm, Mainstream Corporate), and David Leeming (London, Energy & Infrastructure).