The Investment Management Corporation of Ontario (IMCO) has announced it is investing US$400 million in Swedish battery maker Northvolt.

It is reportedly the largest investment IMCO has made in Europe. Among Northvolt’s other investors are BMW and Volkswagen.

IMCO’s funds will help Northvolt’s expansion, and its first gigafactory is based in northern Sweden.

Future gigafactory additions will support its goal of delivering 150 GWh of annual production capacity by 2030.

Rossitsa Stoyanova, Chief Investment Officer of IMCO said: "This innovative collaboration between IMCO's Fundamental Equities and Global Infrastructure teams is paving the way for meaningful capital deployment towards the energy transition,"

Alexander Hartman, CFO of Northvolt said: "This investment fuels our expansion efforts, allowing us to further extend our global footprint and drive sustainable progress in our mission to deliver the world's greenest battery."

IMCO’s investment comes as Northvolt looks set to prepare for its IPO, which could value the company at more than $20 billion.