According to CNBC, the company said on a statement that the fresh funding will be used for the "expansion of battery cell and cathode material production in Europe to support the rapidly expanding demand for batteries."

Northvolt Ett, the company's first gigafactory began the first deliveries to European customers, and the Swedish battery maker claims that it has 55 billion dollars-worth of orders from carmakers such as Volvo, BMW and Volkswagen.

Northvolt's new investment came at a good time for the company, as the demand for EV batteries will only increase with countries in the EU looking to replace fossil-powered vehicles with fully-electric ones by 2035.

Peter Carlsson, Northvolt’s CEO and co-founder, said that "the combination of political decision making, customers committing even more firmly to the transition to electric vehicles, and a very rapid rise in consumer demand for cleaner products, has created a perfect storm for electrification."

Data from the International Energy Agency shows that global EV sales hit 6.6 million in 2021, with the first quarter of 2022 recording sales of 2 million EVs, 75% more than the same time frame last year.