(Bloomberg) -- Battery-storage company Polarium Energy Solutions AB raised 500 million Swedish kronor ($49 million) in a fresh funding round backed by investors with stakes in beleaguered battery maker Northvolt AB.
Polarium issued convertible preference shares to existing investors, according to a statement on Tuesday. They include Harald Mix, who has through his investment vehicle Vargas Holding AB bet big on some of the most high-profile green technology firms in the Nordic country, and pension funds AMF and Alecta, made famous by its $3.2 billion in losses on US niche banks and European real estate.
Polarium focuses on energy-storage solutions for industrial and residential applications, and in 2022 had a valuation of more than $1 billion, giving it unicorn status. Its chief executive officer is Clas Gunneberg.
The bet on the battery firm comes as one of the industry pioneers wobbles. Northvolt, which was once championed as one of the European Union’s home-grown automotive battery champions, is mired in a liquidity crisis, having struggled to scale up production while depleting its cash reserves. The company is currently negotiating with investors and lenders to secure fresh funding.
Both Vargas and AMF are also Northvolt owners, but Alecta is not, according to end-2023 data.
Alecta is now investing 100 million kronor into Polarium, it said in a separate statement, though it acknowledged that the company hasn’t developed well since the pension fund first invested in 2022. Polarium, under a new management, has a “credible business strategy,” Head of Equities Magnus Tell said, adding that a deal to restart deliveries to its biggest customer is “clearly positive.”
(Corrects third paragraph to remove erroneous reference to Northvolt founder.)
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