The Investment Management Corporation of Ontario (IMCO) has invested $400mln into Northvolt, the Swedish battery maker, in a move that may herald an IPO, according to Reuters.
This cash injection, the largest IMCO has made in Europe to date, comes in the form of convertible notes that can be converted on a stock market listing.
Northvolt, backed by prominent investors including BMW and Volkswagen, delivered its inaugural batch of battery cells from its gigafactory in Skelleftea, Sweden, last year.
The company is aiming to become Europe's leading battery manufacturer. Since 2017, it has garnered more than $8 billion in debt and equity, inclusive of $1.1 billion in convertible notes from a range of investors last year.
Valued at $12 billion in 2021, Northvolt is in talks with banks for a potential initial public offering that could value it at over $20 billion, as revealed to Reuters by insider sources earlier this year.