The European Investment Bank (EIB) has announced that it will finance the expansion of Swedish company Northvolt’s battery gigafactory in Skellefteå, Sweden, with a total loan package of around $1.038 billion (€942.6 million) to support fully integrated circular battery production on European soil. This financing is part of a record $5 billion debt financing for the expansion of the factory.
The EIB points out that this extension should increase annual battery production capacity to 60 GWh.
$500 million (around €453.6 million) of the EIB’s financing is being provided under a guarantee issued by the Swedish National Debt Office (Riksgälden).
A further $400 million (around €362.9 million) is guaranteed under the European InvestEU programme.
In addition, $138.7 million (around €126.1 million) of the total package will be provided in the form of intermediated lending to Northvolt through participating commercial banks.
On Monday 8 January, the Commission announced the approval of the first German State aid, known as “alignment aid”, amounting to €902 million to attract the production of Northvolt batteries, sought-after by the United States, to the Heide site in Germany (see EUROPE 13323/5). (Original version in French by Émilie Vanderhulst)