Northvolt receives $14 billion battery cell order for Swedish gigafactory from Volkswagen

• Northvolt and Volkswagen Group unveil next step in partnership plans: Northvolt receives $ 14 billion order as it is selected as a strategic lead supplier for premium battery cells for Volkswagen Group in Europe. Volkswagen will at the same time increase its ownership in Northvolt.

• The Northvolt Volkswagen partnership will be centered around Northvolt's gigafactory in Sweden, which will be expanded to achieve further economies of scale, reduced complexity and a better environmental footprint for the product.

• Northvolt will sell its joint venture share in Salzgitter, Germany, to Volkswagen as the automotive company scales up its battery manufacturing efforts in Europe.

Stockholm, Sweden – Northvolt and Volkswagen Group today unveiled the next step in the partnership between the two companies, which was initiated in 2019. The collaboration will place a greater focus on Northvolt's gigafactory in Sweden, which will be further expanded to support a combined order worth more than $ 14 billion over the next 10 years as Northvolt is selected by Volkswagen Group as a strategic lead supplier for premium battery cells in Europe. In total, Northvolt has now secured in excess of $ 27 billion worth of contracts from key customers.

"Volkswagen is a key investor, customer and partner on the journey ahead and we will continue to work hard with the goal of providing them with the greenest battery on the planet as they rapidly expand their fleet of electric vehicles," said Peter Carlsson, Co -Founder and CEO, Northvolt.

The next step in the partnership is the result of a mutual analysis on how to best leverage the strengths and ambitions of each party during the years to come. By consolidating cell production to the Northvolt Ett gigafactory, the partners will achieve further economies of scale, thereby securing the best possible cost and enabling the lowest environmental footprint in the world for cell production.

As Volkswagen Group plans to scale up its own battery manufacturing in Europe, Northvolt will sell its share in the joint venture Northvolt Zwei in Salzgitter to Volkswagen. Volkswagen will at the same time increase its ownership in Northvolt.

“Volkswagen will continue to deepen the collaboration and partnership with Northvolt. They are one of our key battery suppliers as we make the transition to electric mobility – and there is potential to expand this partnership even further,” said Thomas Schmall, Chairman of the Board of Management of Volkswagen Group Components.