Sustainable Transport CASE STUDY: Northvolt As electric vehicles and renewable energy proliferate, one COO were heavily involved in the construction of Tesla’s first of the biggest hurdles to mass adoption has been scaling “Gigafactory” in the US, bringing critical experience to bear battery manufacturing in a sustainable way. In 2018, we and providing a clear vision for company development. In identified that Northvolt, a Stockholm, Sweden-based 2019, we teamed with Volkswagen to lead a $1 billion Series lithium-ion battery manufacturer, had the potential to bring D financing round. As Northvolt executed on its strategy, we a new level of sustainability to manufacturing the batteries helped the company raise $1.6 billion of non-recourse, first- that power electric vehicles and provide customized energy and second-lien debt in 2020 — the first such financing for storage solutions. a battery manufacturer. We believe that the company has a differentiated value In 2021, we again partnered with Volkswagen, along with proposition: a focus on delivering batteries with a other investors, to invest an additional $2.75 billion of equity significantly lower carbon footprint than those produced — the largest private capital raise in Europe’s history — to by others, realized through a combination of factories help fuel the company’s global expansion and increase fully powered by hydropower and a vertically integrated capacity at its factory in the far north of Sweden. Thanks production cycle that recycles many of the minerals and raw to our close relationship with Northvolt, we were able to materials required by lithium-ion batteries. help the company navigate multiple complex financing transactions at key points in its development. Over the course of a year, we conducted deep diligence on the company and team. Importantly, the company’s CEO and Sustainability Report 2021 Sustainability Issuance Report | Featured Investments 129