InvestEU programme supports €392 million investment in Europe’s first circular battery production gigafactory in Sweden
The InvestEU programme provides support to two investments worth around €392 million announced as part of the expansion of Northvolt’s gigafactory in Northern Sweden, Skellefteå today. Firstly, InvestEU backs €362.9 million of the investment from the European Investment Bank (EIB). Secondly, InvestEU backs €28.8 million of the investment from the Nordic Investment Bank (NIB). The EIB and the NIB are both financial implementing partners of the InvestEU programme.
The investment will support the expansion of Europe’s first circular battery production gigafactory, Northvolt Ett, in Skellefteå, Sweden. The expansion is expected to increase the output capacity for battery production to up to 60 Gigawatt hours per year. The InvestEU support for this project also contributes to the goals set out in the Green Deal Industrial Plan, which aims to provide support to scale up the EU’s manufacturing capacity for the net-zero technologies required to meet Europe’s ambitious climate targets. It follows previous support for Northvolt’s battery production under the InnovFin programme (€52.5 million), and the Investment Plan for Europe (€319 million).
Commission Executive Vice-President Maroš Šefčovič in charge of the European Green Deal and the European Battery Alliance said: “We mean business when it comes to Europe’s battery industry. It is of strategic importance and a key battleground for global competitiveness. Northvolt, our battery pioneer, showcases that the EU has what it takes to build an innovative, sustainable and globally competitive battery ecosystem. I am proud of Northvolt’s success story, as well as of other 160 industrial projects taking shape across the entire value chain, while promoted under the European Battery Alliance. The EIB’s role is indispensable. We need to be strategic, bold, agile.”
The InvestEU programme provides the EU with long-term funding by leveraging private and public funds in support of EU policy priorities. As part of the programme, the InvestEU Fund is implemented through financial partners who will invest in projects using the EU budget guarantee and thus mobilising at least €372 billion in additional investment.
