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Facts: BillyBobs UK INVESTOR MAGAZINE post needs repeating:-
Northvolt IPO: what we know so far
Swedish battery maker Northvolt is reportedly gearing up for an IPO as it plans to build more gigafactories across Europe to meet the burgeoning demand for electric vehicle batteries and renewable energy storage.
According to reports by the Financial Times, the company could be worth $20bn on listing.
Northvolt is a leader in lithium battery production but made the headlines recently when it announced the development of sodium-ion batteries.
Why is the Northvolt IPO important?
Swedish unicorn Northvolt is one of the world’s largest battery manufacturers and counts companies such as BMW, Fluence, Scania, Volvo Cars and Volkswagen Group as their clients.
The group has received over $55 billion in orders since it was founded in 2016 and employs 5,000 people across Sweden, Germany, Norway, Poland, Portugal, the US and Canada.
The Northvolt IPO is important because it will demonstrate investor appetite for electric vehicle and renewable power storage technology at a time when the pace of growth in EV sales is starting to slow, and major wind projects are canned.
The anticipation around the Northvolt IPO ratcheted up a notch or two last week after the company announced the development of 160 watt-hours per kilogram sodium-ion batteries designed for low-cost energy storage across India, the Middle East and Africa.
Peter Carlsson, CEO and Co-Founder of Northvolt, said, “the world has put high hopes on sodium-ion, and I’m very pleased to say that we’ve developed a technology that will enable its widespread deployment to accelerate the energy transition.”
“It’s an important milestone for Northvolt’s market proposition, but battery technology like this is also crucial to reach global sustainability goals, by making electrification more cost-efficient, sustainable and accessible worldwide.”
Northvolt Sodium Batteries
Northvolt has developed a sodium-ion battery free from nickel, cobalt, graphite, manganese, and, significantly, lithium.
Northvolt’s breakthrough sodium-ion batteries are based on hard carbon anodes and Prussian White cathodes. Prussian White is made from sodium, iron, nitrogen and carbon.
The absence of lithium and other critical metals will reduce reliance on China and make battery storage for renewable power much cheaper.
Sodium-ion batteries can be made using locally sourced materials instead of expensive imported critical metals, lowering overall cost.
The company is still a way off commercialising batteries for use in electric vehicles. Still, as soon as the energy density is improved, some hope sodium batteries will overtake lithium in electric vehicle applications.
Northvolt is not the only company developing sodium-ion technology. Chinese EV maker CATL and London-listed AMTE Power are among many companies working on their own sodium power solutions.
https://ukinvestormagazine.co.
Wise Owl. You've gone too far now. Been rumbled. You are not Benny Hill sir!
Who do you work for?
don't use the word '****' on here! i'll drink to that!
BillyBob, Thanks great spot:-
"According to reports by the Financial Times, the company could be worth $20bn on listing."
"Peter Carlsson, CEO and Co-Founder of Northvolt, said, “the world has put high hopes on sodium-ion, and I’m very pleased to say that we’ve developed a technology that will enable its widespread deployment to accelerate the energy transition.”"
Makes our £1.5m mcap a bit paltry looking eh.
Haha very funny. Is he Benny Hill I wonder? That would be fabulous! His post history is hilarious, love the Chinese, they are so funny without realising it.
I see Wise Owl is very keen on China in his post history. Very amusing to read haha. What on earth are you doing posting here Wise Owl?
If I apply a Chinese accent to your post then I think I can visualise you. Chinese Wise owl?
Always found owls to be somewhat sinister creatures myself.
Pinnacle have already completed DD on AMTE, they are stumping up. PIs remaining shares are clearly being taken as they come onto the market. De-rampers are quitely going about their business trying to persuade remaining PI's to dump their stack for their city masters. No one has any patience, that will be their loss. One week to go. Market cap £1.5m, 166m shares in issue.
Batteries will play an essential role in our energy transition and our ability to successfully
achieve net zero by 2050. High capacity and reliable rechargeable batteries are a critical
component of many devices, modes of transport, and our evolving energy generation
capability.
Today we publish the UK’s first battery strategy, alongside the Advanced Manufacturing Plan.
This includes the Government’s commitment to over £2 billion in new capital and R&D funding
being made available for the automotive sector, supporting the manufacturing and
development of zero emission vehicles, their batteries and supply chain for five years to 2030.
This strategy represents a whole of Government effort, developed with business.
https://assets.publishing.service.gov.uk/media/6560b0920c7ec8001195be01/uk-battery-strategy.pdf
Todays news:-
Electric vehicle battery strategy launched by Government
The Government has launched an electric vehicle (EV) battery strategy setting out how it intends to grow the supply chain in the UK.
The UK’s first battery strategy has been published alongside its advanced manufacturing plan, which includes £2 billion in funding being made available for the automotive sector, supporting the manufacturing and development of zero emission vehicles, their batteries and supply chain for five years to 2030.
https://www.fleetnews.co.uk/news/electric-vehicle-battery-strategy-launched-by-government
I think most Brits these days and perhaps many Europeans would echo those sentiments bah1.
Our own governments appear to be our worst enemy. Decades of abject failure, both Labour and Tory (and SNP) imo.
Basically, I have no time for politicians of any flavour. They all appear corrupt and open to bribery from whatever source.
Yes bah1, I would prefer it to stay in the UK (not on AIM). Best for Scotland and the UK supporting skilled jobs and our communities in general ultimately. I am not sure that is of interest to our government though.
They seem to have agendas other than supporting UK businesses thus far. Time will tell. If anything along those lines is to happen it must be this week before the deal.
CEO here wants off the AIM cesspool asap. Londons junior market is broken, un-investable basically, he knows it, investors know it, the world knows it. It is a broken market. We are off it asap after next weeks vote. Not long to wait.
The current SP reflects that fact that the city and its minions have been carrying out a short and distort attack from the 10p level in the summer imo. Nothing is priced in at all, it has the value of not much more than an AIM cash shell.
All this is happening whilst the Sodium ION EV battery tech market is clearly about to explode (unlike Lithium Ion arrff!).
How more obvious an investment care can there be on AIM right now?
After much soul searching, I would reluctantly accept 9p/share HorisM, I must be honest with fellow investors!
That Bloomberg article is behind a wall - here is more:-
Battery giants are starting to put their money on new sodium-based technology, a sign that there could be yet another shakeup in the industry that’s crucial for the energy transition.
Sodium — found in rock salts and brines around the globe — has the potential to make inroads into energy storage and electric vehicles because it’s cheaper and far more abundant than lithium, which currently dominates batteries. But while chemically and structurally similar, sodium has yet to be used on a large scale, partly due to the better range and performance of similarly sized lithium cells.
That could be about to change. In the past week, Sweden’s Northvolt AB said it made a breakthrough with the technology, while Chinese EV maker BYD Co. signed a deal to build a $1.4 billion sodium-ion battery plant. China’s CATL already said in April that its sodium-based batteries will be used in some vehicles from this year.
“It’s serious investment,” said Rory McNulty, senior research analyst at Benchmark Mineral Intelligence. “It’s creating a confidence boost with them saying we are here to continue scaling capacity to commercialize this technology.”
If sodium products do prove successful, they could curb lithium consumption. It’s also a reminder of the perils of trying to forecast metals usage in a constantly evolving industry as companies seek cheaper and more efficient cells.
While sodium-ion batteries’ low energy density means they’re unsuitable for larger EVs, they could increasingly be used instead of lithium in lower-end, shorter-range vehicles — or for power-grid energy storage, where size isn’t such an issue.
BloombergNEF has said that sodium should cut about 272,000 tons of lithium demand by 2035, or more than 1 million tons if lithium supplies can’t meet usage.
Changes in the metals mix in batteries has upended supply-and-demand outlooks and whipsawed prices. Cobalt and nickel — which just a few years ago were seen facing long-term shortages — have had demand estimates revised by the emergence of cells that don’t use them.
And the potential for big price swings is particularly evident in lithium.
A buying frenzy sent prices soaring through last year — a spike that prompted battery firms to look at sodium as a cheaper alternative — before plunging as EV demand disappointed and supply prospects improved.
“Sodium-ion will have a part to play in improving the lithium supply-demand balance,” said Sam Adham, head of battery materials at consultancy CRU Group. “It will dampen those really severe swings in lithium prices.”
Even with the recent slump in lithium prices, sodium is still a cheaper option. If the market does grow, it could potentially echo the rise of lithium-ion phosphate (LFP) cells that have been preferred to higher-performing products due to their lower cost.
Its clearest potential advantage is in storing excess elect
Obtaining available US EV support funding HorisM is their objective imo. It is clear the CEO would prefer to remain in UK but that does not preclude setting up elsewhere with US EV funding injected into the business imo. I think they will try to do both, keep UK listing (plan in RNS) and potentially gain a US listing. The Legal entity/company can be registered wherever it is best to have it.
They want to produce batteries HorisM, they could licence out too if they so wish in addition. The world needs more and more batteries. Lithium and Sodium batteries are both required for storage and EVs, as mush as possible, right now. Everyone is racing to build factories. It is the new "gold rush". The world cannot meet Net Zero target without this race occurring. The only ones missing this are our government so far lol.