16 January, London, UK – Standard Chartered, a leading international cross-border bank, announces its role as a Mandated Lead Arranger for Northvolt’s USD5 billion project financing for the expansion of Northvolt Ett1, the first gigafactory by a European company. Northvolt is a Swedish battery developer and manufacturer. This Green Loan, structured in accordance with the Green Loan Principles2, will support the expansion of the gigafactory, located in the Arctic Circle, Sweden, including development of the Cathode Active Material (CAM) facilities and the battery recycling plant. It is the largest financing in the battery gigafactory space to date, and the first battery deal the Bank has arranged.
Standard Chartered played a leading role in the syndicated financing with a group of other lenders, acting as a Mandated Lead Arranger and Lender.
The project, which aims to build a fully vertically integrated European battery supply chain, is the first of its kind for Europe. The aim is to produce green batteries using wholly renewable energy and through large-scale recycling of cells and raw materials. Production from the gigafactory, once fully operational, will be capable of supplying up to one million electric vehicles a year, accelerating their procurement and facilitating the transition to net zero.
The financing will also enable the expansion of the adjacent recycling plant, Revolt Ett. This plant has entered hot commissioning and is processing its first materials. The facilities recover battery-grade metals with a carbon footprint 70% lower than virgin raw materials extracted from mining, creating a fully integrated circular battery production. This is the first facility of its kind outside Asia.
Sverre Hana, CEO and Country Head, Client Coverage, Nordics at Standard Chartered, said: “We are delighted to further grow our relationship with Northvolt, supporting them in their efforts to deliver clean, renewable energy. This is a landmark transaction for the development of cleaner technology, boosting job creation and long-term European competitiveness. Battery manufacturing is a new sector and an important area of focus for Standard Chartered, so we are proud to have played a key role in this deal and look forward to supporting Northvolt going forward.”
Alper Kilic, Global Head of Project and Export Finance at Standard Chartered, commented: “This transaction represents a superb strategic opportunity for us to use our expertise in sustainable finance structuring and grow our renewables business, increasing our track record in Europe. We are working closely with our clients to help them finance sustainable projects in new technologies, which is the future in Europe and globally. We are very excited about this opportunity.”
Standard Chartered is committed to promoting a sustainable future, where finance plays a key role in building a cleaner, fairer world. This deal is an example of the pledge to the just transition to net zero, in line with the Bank’s sustainability framework3.
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