Nippon Export and Investment Insurance (Nexi) is providing loan insurance to Swedish battery maker Northvolt for its lithium-ion battery (LIB) plant expansion project undertaken by its Northvolt Ett factory.
It said the $150 million insurance will be provided to a loan facility for the purchase of equipment from Japan.
NV Ett operates a LIB gigafactory in Skellefteå in northern Sweden, being developed by Northvolt. The project will expand battery production capacity to 45GWh by constructing the third and fourth plants on the site. The first and second are currently under construction by NV Ett, along with a new battery recycling plant.
Nexi said NV Ett is planning to obtain project financing from the Swedish government, European and Asian export credit agencies, and the European Investment Bank.
The insurer provided a loan insurance in 2020 for a loan facility extended by a consortium of banks for manufacturing equipment delivered to Plants 1 and 2 by Japanese companies.
The 11-year insurance covers the loan made by Sumitomo Mitsui Banking Corporation, ING Bank, Citibank, Deutsche Bank and Standard Chartered Bank.