Kingdom of Sweden / Loan Insurance for LIB Manufacturing Plant Expansion Project

Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Atsuo Kuroda) has decided to provide a loan insurance for a lithium-ion battery (LIB) manufacturing plant expansion project undertaken by Northvolt Ett AB (NV Ett) in the Kingdom of Sweden (Sweden). The insurance will be provided to a loan facility to be extended for the purchase of equipment delivered by a Japanese company.

NV Ett operates a LIB gigafactory in Skelleftea in the northeast of Sweden, which is being developed by Northvolt AB, a company established in Sweden in 2016. The project will expand battery production capacity to 45 GWh by constructing the third and fourth plants on the site adjacent to the first and second plants that are currently under construction by NV Ett, as well as build a new battery recycling plant.

The LIBs to be produced in the project will be sold to manufacturers of automobiles, trucks, and machineries in Europe. NV Ett is planning to procure construction funds of the project through project financing with a support of Swedish governmental financial institution, ECAs in Europe and Asia, and the European Investment Bank.

NEXI provided a loan insurance in 2020 for a loan facility extended by a consortium of banks with respect to manufacturing equipment that were delivered to Plants 1 and 2 by Japanese companies¹. In the expansion project, another manufacturing equipment produced by a Japanese company is expected to be delivered again, for which NEXI is to provide another loan insurance, covering total of USD 150 million including the initial project.

The loan facility offers financial support for export of Japanese-made manufacturing equipment that would contribute to decarbonization, which is conducive to maintaining and improving the international competitiveness of Japanese businesses. As a policy-based financial institution of Japan, NEXI will continue to firmly assist Japanese companies for their exports.

Contact:Infrastructure Group, Structured and Trade Finance Insurance Department
Tel: +81-(0)3-3512-7674