The Nordic Investment Bank (NIB) has granted a 11-year USD 97.3 million (EUR 88.30 million) loan to Northvolt Ett AB, as part of a consortium, for the development, construction, operation and maintenance of an integrated lithium-ion battery manufacturing and recycling facility in Skellefteå, Sweden. The InvestEU programme will support USD 31.6 million of the loan under the Sustainable Infrastructure policy window.

The loan will co-finance two new battery cell manufacturing blocks that will expand the capacity of the Northvolt ETT factory, as well as a battery recycling plant (Revolt Ett) providing input materials for cell manufacturing at the same site.

Increased access to cost-effectively produced batteries with low transport costs will benefit high value-added business clusters such as automotive and electric apparatus industries, add value to mining sectors producing nickel or rare earth metals while spurring further investment in renewable energy production across NIB’s member countries.

Peter Carlsson, Co-Founder and CEO of Northvolt, commented: “This financing is a milestone for the European energy transition. It will enable us to realize the full potential of Northvolt Ett and demonstrates that circular, sustainable business practices are fundamental to success in today’s industry.”

André Küüsvek, NIB President and CEO said: “The Northvolt plant is a powerful symbol of the potential of Nordic collaboration, with its ability to source raw materials from Sweden and Finland while providing batteries to the most iconic electric vehicles companies. This project under the InvestEU programme will have a lasting impact on the entire region for years to come.”

The project seeks to reduce CO2 emissions from the current 33 kg/kWh to 10 kg/kWh by 2030 – a level far below the global benchmark of 61–106 kg/kWh – resulting in substantial reductions of tailpipe greenhouse gas emissions.

The loan contributes 100% to climate change mitigation and is eligible for financing from NIB Environmental Bond proceeds.

In 2020, NIB signed a 10-year USD 44.3 million loan with Northvolt ETT AB for the construction of the first two battery cell manufacturing blocks.

The special purpose vehicle Northvolt Ett AB is owned by Northvolt AB, a supplier of sustainable batteries from green factories. Founded in 2016 to enable the European transition to a decarbonised future, the company plans to deliver the world’s greenest lithium-ion battery with a minimal CO2 footprint and the highest ambitions for recycling. Among Northvolt AB’s owners, investors, industrial partners and customers are the founder Peter Carlsson, VW AG, BMW AG, Audi AG, Scania AB, Volvo Group, Goldman Sachs Asset Management, the Danish pension fund ATP and the UK asset manager Baillie Gifford.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition.

The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler and more efficient and flexible. The programme consists of three components: the InvestEU Fund; the InvestEU Advisory Hub; and the InvestEU Portal.

The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of EUR 26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least EUR 372 billion in additional investment. Read more at NIB and InvestEU.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

For further information, please contact
Mikael Ahlers, Senior Banker, Services & Consumer, +358 10 618 0386,

Arild Moen, Associate Director, Communications, +358 10 618 0496,

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