Northvolt prepares to go public within 12 months
Northvolt is preparing to go public in the next twelve months, according to insider sources. The Swedish battery company could be valued at over $20 billion.
The news was broken by Reuters, citing four people familiar with the plans, writing that the Swedish battery cell maker is close to engaging investment banks for a listing in New York or in Europe, which could give the company a valuation of more than $20 billion. Northvolt had already hinted at a possible IPO within two years in June 2022.
Northvolts’ most recent funding round saw the company raise another $1.1 billion, and the company received a valuation of $12 billion in 2021, making for a solid case that it could manage to nearly double its value next year. Considering that Northvolt continues to expand capacities as well as build new production facilities, the third of which was recently announced to be hindered by rising energy costs, the scaling is cost-intensive for Northvolt. Northvolt also signed a supply contract with SK Nexelis for copper foils for a sum of over $1 billion, which the company will need to continue production, which is still being ramped up.
Northvolt itself is remaining neutral with their response: “We will need more capital going forward, and we see it as natural to be prepared for an initial public offering in the future, but such a transaction is not relevant today in current markets,” a Northvolt spokesperson said.
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