PFA concludes agreement on financing sustainable production of batteries

Denmark’s largest commercial pension company, PFA, has entered into a triple-digit million Danish kroner loan agreement with Northvolt supporting the construction of one of Europe’s largest factories for production of sustainable lithium-ion battery cells

PFA has entered into the loan agreement with the Swedish company, Northvolt, as part of financing the ongoing construction of Northvolt Ett, which is expected to become one of Europe’s largest factories for the production of lithium-ion battery cells that are primarily used for electric vehicles. PFA’s loan is part of a larger loan package of USD 1.6 billion.

“As a responsible investor, PFA wishes to make a positive contribution to the green transition, and we believe that electric vehicles will play a major role for many years in terms of reducing CO2 emissions from the transport sector. Northvolts target of securing 50% of the raw materials from recycled batteries and that they use only local wind and water power in the energy-intensive production of battery cells further emphasises the sustainable agenda. We, therefore, consider this a highly attractive investment, which we expect will provide our customers with a solid risk-adjusted return,” says Peter Tind Larsen, Head of Alternative Investments at PFA.

Recently, PFA also launched the climate-friendly pension product PFA Climate Plus, which allows PFA’s pension customers to allocate all or some of their pension savings to a portfolio consisting of certain climate-friendly investments - a portfolio which now includes the investment in Northvolt Ett.

A company in an attractive sector with a strong ownership

Northvolt has a strong position in an attractive sector that is characterised by favourable underlying supply and demand dynamics in a rapidly growing market. The ownership includes the German car manufacturers, Volkswagen, BMW and the American investment bank, Goldman Sachs.

Northvolt is developing the battery cells together with Volkswagen, BMW and other customers, and Northvolt Labs - the company’s industrialization factory - is already performing battery cell test production on a smaller scale. Even though construction of Northvolt Ett is not yet completed, several customers have committed to buying a large proportion of the factory’s future output.

“A large-scale European battery cell production capacity is deemed essential for European industry from a strategic perspective - particularly for the auto industry. In addition, Northvolt has an experienced management team and a strong and strategically robust ownership backing it, which has already invested significant sums in the company,” says Peter Tind Larsen.


- Northvolt Ett is expected to become one of Europe’s largest factories producing lithium-ion battery cells - primarily for use in electric vehicles. The factory is located in Skellefteå in north-eastern Sweden close to the Arctic circle. The production is expected to start in 2021, and the factory is expected to be completed in 2023/2024. Read more about Northvolt at

- The agreement between PFA and Northvolt concerns a subordinated loan for the partial financing of the first phase of the construction of Northvolt Ett.

- PFA is Denmark’s largest commercial pension company, managing customer funds in excess of DKK 550 billion and has 1.3 million pension customers.

- In recent years, PFA has increased its number of investments in unlisted areas and has currently amassed a portfolio of more than DKK 100 billion in unlisted shares, infrastructure, credit and real estate. This includes investments in TDC, Nykredit, Interpark, Danmarks Skibskredit, Scandlines, Avantor, Hornsea 1 and Walney Extension Offshore Wind Farm.

- PFA wishes to invest in sustainable energy sources, and in addition to its loan financing Northvolt Ett, it has also invested in the world’s largest offshore wind farms, Hornsea 1 and Walney Extension Offshore Wind Farm. To this can be added, among other things, investments in Scandlines’ energy-driven ferries, investments in six solar parks in the United Kingdom and commitments to invest in several of the world’s leading infrastructure funds.

- With the launch of PFA Climate Plus in June, the sustainable investments in alternative areas, including Northvolt Ett, now play a central role.

Further information

Christopher Due Karlsson, Press Officer,, (+45) 23 64 83 44