MUFG, alongside a group of other banks, has successfully completed the financing of a $5 billion non-recourse project financing with Northvolt to enable the expansion of the first circular gigafactory outside Asia.

MUFG acted as Mandated Lead Arranger, providing expertise in both project and infrastructure finance elements of the deal.

The financing will enable the expansion of the Northvolt Ett gigafactory in northern Sweden as well as the expansion of the adjacent recycling plant, Revolt Ett, which has now 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 that has not previously existed outside Asia.

Gigafactories are manufacturing facilities in which battery products associated with electrification and decarbonisation technologies are produced.

Phillip Hall, Head of Structured Finance Office, MUFG EMEA, stated:

"We are delighted to have worked with Northvolt on this transaction and to have assisted with the expansion of both the gigafactory and the recycling plant.

MUFG has the platform, expertise and demonstrable track-record in supporting clients in the energy and infrastructure financing space, across a range of project types and business models, in the transition to low-carbon or net-zero operations. We look forward to continuing to support this growth sector."

Peter Carlsson, Co-Founder and CEO of Northvolt, commented:

"This financing is a milestone for the European energy transition. It will enable us to realize the full potential of Northvolt Ett and demonstrates that circular, sustainable business practices are fundamental to success in today's industry."

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