Green credit guarantees for loans to Northvolt

News 22 December 2023

The Swedish National Debt Office has decided to issue credit guarantees for loans for the development of Northvolt’s factory for battery production in Skellefteå, Sweden. The guarantees are provided within the framework of the guarantee scheme for large green industrial investments.

The loans constitute partial financing for increasing the production capacity for batteries at Northvolt’s factory in Skellefteå. The loans being guaranteed amount to a total of USD 1.5 billion and will be issued by a consortium of banks and credit institutions. The Debt Office’s guarantees cover 80 per cent of the loan amount and are provided in accordance with market pricing. The loans are part of a larger financing round that the company will close in 2024.

The batteries enable the phase-out of fossil fuels primarily in the transport sector and increase flexibility in the electricity system through energy storage. They are therefore an important component of the work to achieve climate objectives. The Debt Office assesses that Northvolt’s factory in Skellefteå meets the criteria for green credit guarantees. 

About green credit guarantees 

In order to be eligible for a green credit guarantee from the central government, the investment in question must contribute to Sweden’s environmental and climate policy goals. The Debt Office conducts its assessment on the basis of the criteria set forth in Ordinance (2021:524) on state credit guarantees for green investments.

Read more about the Debt Office’s mandate to provide green state credit guarantees: 
Credit guarantees for green investments