Swedish lithium-ion battery producer Northvolt has reportedly received a $1.2 billion investment from a consortium of investors, including BlackRock Inc BLK and many Canadian pension plans.
Northvolt is planning to establish new factories in Europe and North America with the investment, reported Reuters.
The report noted other investors to take part included Goldman Sachs Group Inc GS, Volkswagen AG VWAGY, Baillie Gifford, Swedbank Robur, Singapore's GIC and Hong Kong-based Chow Tai Fook Enterprises.
The investment reflects corporations’ interest to fund companies that are set to benefit from the move to a low-carbon economy.
"It's a very capital intensive industry... finding the right mix is always hard in this new greenfield kind of transitional projects," the report quoted Northvolt CFO Alexander Hartman.
The funding will help Northvolt increase its factory footprint. The company, in May, announced a €600 million ($654 million) investment to build a plant in Germany.
It is also said to be finalizing plans for a multibillion-dollar battery factory in Canada.
With the latest investment in the form of convertible notes, Northvolt has raised more than $9 billion in debt and equity since 2017, the report added.
Price Action: BLK shares traded lower by 0.33% at $669.41 on the last check Tuesday.
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