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Northvolt Stock: Will EV Battery Manufacturer IPO?

Will Northvolt IPO? Investors are asking this question after the electric vehicle (EV) battery manufacturer made a big announcement. And people are always looking for the next big EV stock. But it doesn’t look like Northvolt stock is on its way yet. Here’s what we know…

Northvolt Stock: The Business

Northvolt stock could be another EV stock opportunity, but rumors of a Northvolt IPO aren't true.

CEO Peter Carlsson and COO Paolo Cerruti co-founded Northvolt in 2016. Carlsson came from a career at Tesla, where he was Vice President of Supply Chain. Northvolt’s goal is to create the greenest EV battery possible and help Europe transition to renewable energy.

Northvolt is based in Sweden. It has three locations there, with an additional two in Germany and Poland. The company now has more than 1,000 employees representing 70 nationalities, according to its website.

After a wave of EV IPOs, investors are now turning to a big piece of the market: battery manufacturers. That’s one reason they want Northvolt stock to hit the market. But the company recently made an announcement that has analysts wondering if a Northvolt IPO could be in the future.

Northvolt IPO: The Volkswagen Deal

Volkswagen is a German automaker. Founded in 1937, it’s become a household name in the industry. And for a while, there’s been a big question around the company: Where will Volkswagen get batteries for its planned EVs?

We have an answer. On March 15, Northvolt announced a $14 billion battery cell order from Volkswagen. The order is for the next 10 years. This is the latest step in the two companies’ partnership, which started in 2019. Volkswagen chose Northvolt as its strategic lead supplier for battery cells in Europe. Carlsson commented…

Volkswagen is a key investor, customer and partner on the journey ahead and we will continue to work hard with the goal to provide them with the greenest battery on the planet as they rapidly expand their fleet of electric vehicles.

Chairman of the Board of Management of Volkswagen Group Components Thomas Schmall added…

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.

A deal that big with a household name? It’s no surprise investors want Northvolt stock. But there’s more…

Volkswagen Increases Ownership

As part of the deal, Volkswagen will increase its ownership in Northvolt. The company is expanding its gigafactory in Sweden in order to increase production capacity. In addition to meeting Volkswagen’s order, Northvolt says it has $27 billion in contracts. This is since its last funding round, led by Goldman Sachs and Volkswagen. It raised $1 billion.

Northvolt Ett, the company’s gigafactory in Skellefteå, Sweden, will be expanded. Northvolt Zwei is a new factory planned by the Northvolt-Volkswagen Group Joint Venture. The group planned to start construction in 2021, with the goal of starting operations in early 2024.

Northvolt will sell its joint venture share to Volkswagen. The automaker will scale up battery manufacturing. The partnership hopes “to achieve further economies of scale, reduced complexity and a better environmental footprint for the product.”

So the big question is…

Will Northvolt IPO?

Northvolt stock is a rumor. The company hasn’t filed or announced any plans to go public. However, the Volkswagen deal might bring Northvolt one step closer to an IPO. The company is also acquiring other companies, such as U.S. battery startup Cuberg.

Cuberg manufactures lithium batteries. And some analysts think these batteries will be the future of the EV industry. If they are, the acquisition places Northvolt in a strong position within both the global and U.S. markets.

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Investors shouldn’t expect a Northvolt IPO anytime soon. But it looks as though it isn’t entirely out of the question in the next few years. Check back for more updated information on Northvolt stock.


About

Amber Deter has researched and written about initial public offerings (IPOs) over the last few years. After starting her college career studying accounting and business, Amber decided to focus on her love of writing. Now she’s able to bring that experience to Investment U readers by providing in-depth research on IPO and investing opportunities.

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