Driving the Evolution of Green Energy
As global automakers ramp up production of electric vehicles, the demand for batteries is growing exponentially. Swedish battery manufacturer Northvolt AB – founded by two former Tesla executives – was looking to build the first home-grown gigafactory for battery cells in Europe. Until recently, European automakers had largely depended on manufacturers in Asia, where the bulk of battery factories are based. That’s where Goldman Sachs stepped in.
How we made it possible
Following a year-long due diligence process, where Goldman Sachs worked alongside Northvolt’s management team to shape the company’s strategic direction and investment structure, the firm’s Merchant Banking Division – alongside Volkswagen and other co-investors -- provided $1 billion in equity financing to support the construction of the battery factory. In addition to the $1 billion in equity, Northvolt raised over $1.5 billion of project debt and announced plans with Volkswagen to build a 50/50 joint venture battery manufacturing facility that will be dedicated to the automaker in Germany.