The Investment Management Corporation of Ontario (IMCO) is investing US$400m (鈧�366m) in Northvolt, a Swedish integrated battery platform focused on the research and development, manufacturing and recycling of sustainable battery cells and systems.
The investment by IMCO, which manages C$73.3bn (鈧�50.8bn) of assets on behalf of public-sector institutions in Ontario, will fund a global expansion of Northvolt.
The company intends to offer the world鈥檚 greenest and lowest-carbon-footprint batteries, designed for use in electric vehicles, industrial processes and energy-storage systems.
IMCO is investing in Northvolt via both its global infrastructure and fundamental equities investments programmes, both of which have climate-change management and net-zero transitions as priorities, it said.
Rossitsa Stoyanova, chief investment officer of IMCO, said: 鈥淭his innovative collaboration between IMCO鈥檚 fundamental equities and global infrastructure teams is paving the way for meaningful capital deployment towards the energy transition.
鈥淲ith this investment, we are tangibly delivering on our climate-action plan, while also strategically managing material ESG risks, ultimately generating sustainable long-term value for our clients.鈥�
The investment also falls under IMCO鈥檚 climate-action plan, which includes a commitment to invest 20% of its assets under management to climate solutions by 2030.
Matthew Mendes, IMCO鈥檚 head of infrastructure, told 91传媒在线: 鈥淲e think [the energy transition] is a place where we can add a lot of value. And this investment really matches well with a couple of themes that we see 鈥� such as the electrification of the general economy 鈥� and certainly transportation is a really big piece of that.鈥�
He added: 鈥淭he recycling component is really important for a number of different reasons. Some of that is environmental sustainability, but part of it is from an energy security perspective, and you鈥檙e starting to see legislation being reflective of that.鈥�
Northvolt鈥檚 first gigafactory, located in northern Sweden, has already begun producing batteries sustainably using fossil-free electricity.
Future additions to the facility are intended to support Northvolt鈥檚 goal of delivering 150GWh of annual production capacity by 2030.
Alexander Hartman, CFO of Northvolt, said: 鈥淲e鈥檙e excited to partner with IMCO鈥檚 fundamental equities and global infrastructure teams to build the future of clean energy together.
鈥淭his investment fuels our expansion efforts, allowing us to further extend our global footprint and drive sustainable progress in our mission to deliver the world鈥檚 greenest battery.鈥�
IMCO said its fundamental equities programme invests in companies and works with their management teams over the long term to unlock shareholder value.
The investment falls under its 鈥榝undamental-plus鈥� approach, where IMCO pursues negotiated transactions for meaningful equity stakes in public and pre-public companies.
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