The Ontario Municipal Employees Retirement System is co-leading a US$2.75 billion ($3.3 billion) private placement to raise equity for Northvolt, a Swedish battery maker.

Alongside the OMERS, four Swedish public sector pension funds, Goldman Sachs Asset Management and the Volkswagen Group also co-led the private placement.

According to a press release, the equity injection will be used to fund the creation of high-capacity batteries for electric vehicles. It will also be used to expand its lithium-ion battery manufacturing facility in Skellefteå, Sweden.

Read: Caisse, OMERS investing in sustainable energy sector

The move is part of a broader effort to meet increased demand following a $14 billion order placed by Volkswagon earlier this year, noted the release. Northvolt is also planning to open two more major production centres in Europe by 2030.

Other investors in the equity raise included Northvolt shareholders, American Family Insurance and Arbejdsmarkedets Tillægspension, Denmark’s largest public pension investor.