Volkswagen to take stake in battery cell maker Northvolt

Volkswagen says it is buying a stake in Swedish battery cell producer Northvolt AB and plans a joint factory in Germany as the German automaker prepares to ramp up production of electric vehicles next year

Volkswagen plans to step up production and sales of E-cars next year with its forthcoming ID. 3 compact.

Plant construction would start in 2020 at the earliest and production for VW would commence at the end of 2023 or the beginning of 2024.

VW's investment is part of a capital raise by Northvolt that includes $1 billion in equity capital alongside additional debt financing from the European Investment bank and other lenders. The new financing will enable establishment of a lithium-ion battery factory in Skelleftea, Sweden, Northvolt said.