Battery maker Northvolt said on Tuesday it has raised $1.1 billion in convertible notes from a group of investors to finance expansion of its factories in Europe.

Investors participating in the capital raise included AMF, Ava Investors, Baillie Gifford, Folksam Group, PCS Holding, Swedbank Robur, TM Capital and Volkswagen Group.

The Swedish company, whose biggest shareholder is Volkswagen, has so far raised about $8 billion in equity and debt. It raised $2.75 billion in equity in June last year, which valued the company at $11.75 billion.

Northvolt has started delivering batteries to customers after assembling its first battery cell at the end of December in its gigafactory in Sweden, making it the first European company to design and manufacture a battery in Europe.

“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,” Chief Executive Peter Carlsson said in a statement.

Northvolt has to date secured more than $55 billion worth of contracts from customers including BMW, Scania, Volkswagen and Volvo Cars.

(Reporting by Supantha Mukherjee in Stockholm; Editing by Lisa Shumaker)

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