By Joshua Kirby

Volkswagen AG is investing a further $620 million in Swedish battery partner Northvolt AB as part of a funding round of a total $2.75 billion, the German auto maker said Wednesday.

The investment will maintain Volkswagen's stake in Northvolt at around 20%, the company said. Proceeds from the funding round will be used to expand capacity in production, recycling and research and development.

Volkswagen previously invested around 900 million euros ($1.10 billion) in Northvolt in 2019, acquiring a roughly 20% stake and a seat on the company's board of directors.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

June 09, 2021 03:22 ET (07:22 GMT)

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