ATP increases investment in sustainable electric car batteries

Danish pension provider, ATP, has increased its investment in Northvolt, which supplies sustainable electric batteries to the automotive industry, among others.

The company already has contracts worth more than DKK 165bn, with prominent names such as Volkswagen, BMW and Scania on the client list.

ATP is currently the only Danish investor involved in a major equity raise in the Swedish electric battery company and will be investing a further DKK 900m, which makes the current total investment DKK 1.5bn. Northvolt has currently raised DKK 17bn towards the expansion of the planned capacity, where the company is looking to produce 60 GWh annually at its factory in Skellefteå in northern Sweden.

One of the company’s goals is to produce the world's most sustainable electric car battery by using hydropower in the energy-intensive process. Northvolt has also set up an ambitious goal to have recycled batteries treated at its own factories make up half of the raw materials used in production by 2030. The raw materials will exclusively come from suppliers where the production follows OECD guidelines.

Commenting, ATP CEO, Bo Foged, said: “We have been involved from the start two years ago and it has obviously not been without risk, but Northvolt breathes sustainability into the entire value chain and that fits perfectly with our own ambition, where we want to contribute to the green transition while also making a good return.

“The transport sector is undergoing a much-needed transition to using more sustainable forms of energy and we need more solutions – Northvolt has one of them, and we are proud to be part of the development and being able to create a good return for our members at the same time.”

Northvolt currently has contracts for a total of DKK 165bn with automotive manufacturers such as Volkswagen, BMW and Scania, which will purchase the batteries that Northvolt expects to produce on a large scale from the end of 2021.

    Share Story:

Recent Stories


Podcast: The benefits of private equity in pension fund portfolios
The outbreak of the Covid-19 pandemic, in which stock markets have seen increased volatility, combined with global low interest rates has led to alternative asset classes rising in popularity. Private equity is one of the top runners in this category, and for good reason.

In this podcast, Munich Private Equity Partners Managing Director, Christopher Bär, chats to European Pensions Editor, Natalie Tuck, about the benefits private equity investments can bring to pension fund portfolios and the best approach to take.

Podcast - The power of three: Using Common Contractual Funds to improve tax outcomes for investors
Large asset owners are still investing in equities in a way where they are taxed on their income. The implication is that they get a poorer return. They need to, and can, improve this, but how?

In this podcast, AMX Head of Client and Manager Development, Aaron Overy, and AMX Product Tax Specialist, Kevin Duggan, discuss with European Pensions Editor, Natalie Tuck, about three options to help ensure good withholding tax outcomes for institutional investors.

Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows

Advertisement