ING co-leads a consortium to provide a $1.6 billion boost to sustainable battery producer Northvolt, accelerating the electrification of transportation.

ING has expanded its rapidly growing portfolio of sustainable loans by becoming a lead lender in a $1.6 billion debt financing package for Sweden’s Northvolt. This funding will support the creation of Europe’s first home-grown gigafactory for lithium-ion batteries. The package, provided by a consortium of leading commercial banks, pension funds, and public financial institutions, brings Northvolt’s total raised capital to over $3 billion.

Northvolt, a key player in the energy transition, is a battery developer and manufacturer specializing in lithium-ion technology for electric vehicles. What sets Northvolt apart from other battery manufacturers is its commitment to sustainability, producing batteries using renewable energy and maximizing the use of raw materials sourced from recycled batteries.

The financing will support the development of the gigafactory Northvolt Ett in Skellefteå, Sweden, alongside significant investments in battery cell technology, process development, and recycling at the newly established industrialization factory.

“We congratulate Northvolt on reaching this important milestone and eagerly anticipate the future this step will help usher in,” says Diederik van den Berg, Global Lead Renewables & Power, Energy at ING. “As a leading bank in financing the energy transition, ING is excited to be part of this first chapter of the Northvolt story; we look forward to supporting the company in its ambition to transform the battery production industry.”

The support of world-class financial institutions for a new industry in Europe is a clear indicator of the direction of the markets and the opportunities it presents for sustainable investments.

ING played a crucial role in making this transaction possible, leveraging its unique expertise in the energy sector and its leading track record in limited recourse financing.

“ING’s sector expertise across the battery production value chain, from metals and mining to automotive, and from energy to export finance, helped us shape a uniquely innovative financing structure befitting Northvolt’s ambitions,” says Tim van Pelt, Director, Renewables & Power, Energy at ING.

“We are proud to have played a pivotal role in this transaction, which is significant for the energy transition. ING provided senior debt financing to Northvolt Ett as Mandated Lead Arranger and Senior Lender, as well as second lien financing through ING’s Sustainable Investment Fund.”

Following its support for Scotland-based GreenPower International last year, Northvolt marks ING Sustainable Investments’ second participation outside the Benelux. According to Mark Weustink, Head of Sustainable Investments, “Northvolt is an exemplary case of how Sustainable Investments supports its clients with risk-bearing capital during their scale-up, helping them accelerate and realize their sustainable ambitions.”