In a move aimed at bolstering sustainable energy infrastructure, three Canadian pension funds have joined forces with global asset manager BlackRock to invest US$1.2 billion in Swedish battery manufacturer Northvolt. The Investment Management Corp. of Ontario (IMCO), the Canada Pension Plan Investment Board, and the Ontario Municipal Employees Retirement System have partnered with BlackRock to enhance a convertible debt programme that was initiated by Northvolt last year, according to a recent report. With this latest infusion of capital, the programme‘s total size has expanded to US$2.3 billion. This funding influx follows IMCO’s earlier investment of US$400 million into Northvolt, underscoring its growing interest in sustainable energy ventures. Northvolt has laid out its intentions to allocate the proceeds from this financing towards fuelling its expansion plans in both European and North American markets. The Swedish battery maker is close to moving forward on construction of a new manufacturing facility in Quebec, Canada. “We have found a committed group of investors that understands both the urgent need and massive financial potential in enabling the swift electrification of society,” Northvolt CFO Alexander Hartman said in a statement. “However, there is a long road ahead if Europe and North America are to reach their full potential as leaders of the energy transition.”
