Northvolt, a Swedish manufacturer of lithium-ion batteries, announced on Tuesday that it has raised $5 billion to expand its battery production in northern Sweden. This is the largest green loan raised in Europe.

More than $13 billion in debt and equity have now been obtained by the corporation to expand its operations into Sweden, Poland, Germany, the US, and Canada.

Together with the European Investment Bank and the Nordic Investment Bank, a consortium of 23 commercial banks is providing the new loan, which also includes refinancing of the $1.6 billion debt package raised in 2020.

BlackRock, Canadian pension plans, Goldman Sachs, Volkswagen, Baillie Gifford, Swedbank Robur, and Singapore’s GIC were among the investors who had previously contributed billions to the venture.

The Swedish corporation has received orders totaling more than $55 billion from various automakers, including Volkswagen Group, BMW, Scania, and Volvo Cars.

In the past, Reuters has revealed—citing sources—that Northvolt was getting ready for an IPO that would fetch the business a valuation of over $20 billion.

Previously, in an effort to increase output at its facility in Northern Sweden, battery manufacturer Northvolt AB raised $1.2 billion from foreign investors.

Northvolt obtained $3.5 billion in funding in August and used that money to extend a convertible note from the previous year. The company is expected to close less than half of the deals from 2022, with its level of funding in 2023 placing it among the biggest in Europe’s startup scene.

“We’re going to keep investing a lot in our projects in Sweden and overseas,” Alexander Hartman, Chief Financial Officer at Northvolt, stated during an interview. According to him, the corporation invests roughly $200 million a month in ramping up operations and increasing productivity throughout the organisation.

Investissement Quebec, KfW, CDPQ, Danica Pension, and East Innovate were among the investors in the most recent round. Since its founding in 2016, the business has raised over $10 billion in debt and equity.

The convertible note has worked effectively for the company and its investors, Hartman said. “It has downside protection, minimises valuation discussions, and converts into equity in the future.”

The sentiment is shared by Jacob West Buhl, Investment Director at Danica Pension, who stated that after “following Northvolt closely as a second-lien debt lender for several years,” his company desired to have a larger equity position.