UPDATE 1-Volkswagen is investing $ 620 million in Northvolt to secure battery supply
* Volkswagen participates in financing round of USD 2.75 billion
* Volkswagen keeps Northvolt share stable at 20%
* Northvolt produces batteries worth 40 GWh for VW (Adds CFO comment, context)
FRANKFURT, June 9 (Reuters) – Volkswagen announced on Wednesday that it would be investing an additional $ 620 million in Swedish battery maker Northvolt to secure cell capacity for its EV push.
The investment, which is part of a $ 2.75 billion financing round from the lithium-ion battery maker, will keep Volkswagen’s stake stable at around 20% and follows an initial investment of 900 million euros in 2019.
“With this investment we are strengthening our strategic partnership with Northvolt as a supplier of sustainable battery cells that are made from renewable energies and are fully recyclable,” said Volkswagen CFO Arno Antlitz.
The latest funds are to be used to expand capacity in the areas of production, recycling and research and development, said Volkswagen.
Northvolt is practically the first of six gigafactories that Volkswagen plans to bring to market in Europe by 2030 to secure batteries in order to overtake Tesla as the world’s largest player in the field of electric vehicles.
Northvolt will start producing cells for Volkswagen from 2023, with capacity for Europe’s largest automaker increasing over time to up to 40 gigawatt hours per year, the company said. (Reporting by Christoph Steitz; editing by Riham Alkousaa and Madeline Chambers)