The Swedish battery manufacturer Northvolt has temporarily stopped the planned expansion of its production facility in Skellefteå, northern Sweden. According to a report by the Reuters news agency, this now has a direct impact on the project’s financing, which was secured in early 2024.
Planned tripling of production capacity
The financing, agreed in January 2024, included a $5 billion loan package intended to triple Northvolt’s production capacity. In addition to the European Investment Bank, the participating donors also include the Nordic Investment Bank and more than 20 commercial banks. The Swedish Public Debt Administration had promised guarantees worth $1.5 billion. However, according to Reuters, the amount will not be paid out for the time being due to the delay.
Payout unlikely in the near future
According to the director of the Reich Debt Administration, Karolina Ekholm, the guarantees only apply to the original agreements. Since the expansion has been put on hold, a payout is unlikely in the near future. The European Investment Bank, which is contributing more than $1 billion in financing, also confirmed that its previous loans to Northvolt came from an earlier loan from 2020 and would be refinanced as part of the new package.
