Latham Advises Consortium of Global Financial Institutions in Landmark US$1.6 Billion Financing for Northvolt

Cross-border team represents lenders, export credit agencies, and multi-lateral institutions in financing of Europe’s first green battery gigafactory.

August 03, 2020

Latham & Watkins advised the European Investment Bank, Euler Hermes, the Export-Import Bank of Korea (KEXIM), Nippon Export and Investment Insurance (NEXI), BPI France and 12 commercial banks and other lending institutions in respect of a US$1.6 billion financing package for Sweden’s Northvolt, a European sustainable battery developer and manufacturer specialising in lithium-ion technology for electric vehicles. The debt raise will support the creation of Europe’s first home-grown gigafactory for lithium-ion batteries.

Including the US$1.6 billion debt raise, Northvolt has to date raised over US$3 billion in equity and debt to support the development of two gigafactories for lithium ion battery cell production in Europe. Northvolt is also making significant investments in battery cell technology, process development and recycling at its recently established industrialization factory.

Commenting on the transaction, Latham & Watkins finance partner Matthew Brown, said: “Northvolt’s gigafactory will play a major role in accelerating the electrification of transportation in Europe, and beyond, in the coming years. We are proud to have been a key advisor on this landmark financing.”

The cross-border Latham team was led from London by finance partner Matthew Brown and associate Katy Bagerman, with support from associates Charlotte Hawkins and Chidi Onyeche, partner John Balsdon and associates Alex Buckeridge-Hocking, and Ashley Robson. Advice was also provided by Tokyo finance counsel Richard Kim and associate Kazuko Ali; Paris finance counsel Etienne Gentil; New York finance partner Larry Safran; and German corporate partners Tobias Larisch and finance partner Thomas Weitkamp, with associates Kim Woggon and Katerina Intfeld. London capital markets partner Shatha Ali and associate Yana Nastyushenko advised on derivatives matters.

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