VW and Goldman-backed battery maker Northvolt gets $1.1 billion funding injection

Northvolt’s most recent funding announcement comes at a time when major economies are laying out plans to move away from vehicles that use diesel and gasoline.

A range of investors, including Volkswagen, are taking part in the capital raise for Northvolt.

The company said the convertible note would be used to finance the expansion of battery cell and cathode material production in Europe.

PCS Holding is one of the investors in the raise.

Commercial deliveries to European customers have begun at Northvolt's first gigafactory. Volvo Cars, BMW, and Volkswagen are some of the businesses that have orders from the firm.

There are facilities that make batteries for electric cars. Musk is said to have coined the term.

At a time when major European economies are moving away from road-based vehicles that use diesel and gasoline, Northvolt's most recent funding announcement comes.

The United Kingdom would like to stop the sale of new diesel and gasoline cars and vans by the year 2030. All new cars and vans will have to have zero tailpipe emissions by the year 2035. The European Union is following the same targets as the U.K.

As the number of electric vehicles on our roads increases, the competition to develop factories capable of manufacturing EV batteries at scale is increasing.

Peter Carlsson, the CEO and co- founder of Northvolt, was bullish about the future.

A 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 electric vehicles.

The International Energy Agency says electric vehicle sales hit 6 million in 2011. EV sales increased by 75% in the first three months of the year.