Swedish lithium-ion battery producer Northvolt announced the raising of $1.2 billion to finance plans for its further European and North American expansion.

Northvolt said the funding is an extension of the $1.1 billion convertible note signed in July 2022, and has attracted investment from funds labeled “dark green” in accordance with Article 9 of the EU’s Sustainable Finance Disclosure Regulation (SFDR).

Leading the $1.2 billion finance extension are the Investment Management Corporation of Ontario (IMCO), Canada Pension Plan Investment Board (CPP Investments), Canadian pension fund OMERS, and BlackRock.

The news comes as Northvolt assembles its first battery systems at Northvolt Dwa in Poland.

Northvolt battery cells are currently designed and developed at Northvolt Labs in Västerås, Sweden, and Northvolt Cuberg in San Leandro, California, US.

Battery cell manufacturing is ramping up at Northvolt Ett gigafactory, in Skellefteå, Sweden, which will be joined by an adjacent giga-scale recycling plant, Revolt Ett, due to start operations later this year.

Additional projects are under development in Sweden, Germany and Portugal.

The $2.3 billion convertible round raised by Northvolt to date includes Goldman Sachs Asset Management, AP funds 1-4 (via the co-owned company 4 to 1 Investments), Folksam Group, ATP, Volkswagen Group, AMF, Ava Investors, IMAS Foundation, Baillie Gifford, Swedbank Robur, PCS Holding, Olympia Group, TM Capital, Compagnia di San Paolo through Fondaco Growth, East Innovate, ADQ, GIC, Chow Tai Fook Enterprises (CTFE) and J. Safra Sarasin.

“With this capital raise, Northvolt has now secured over $9 billion in equity and debt to deliver on over $55 billion in orders from key customers, including BMW, Fluence, Scania, Volvo Cars and Volkswagen Group,” said the firm.