Standard Chartered Invests US$588m in Finnish Battery Sector

Standard Chartered has arranged a €514m (US$587.6m) multi-export credit agency-backed green financing package for Easpring Finland New Materials Oy, supporting the development of a major battery materials facility that will strengthen Europe's clean energy supply chain.

The financing will fund the construction of a new cathode active material (CAM) plant in Kotka, Finland, a project designed to reinforce Europe's domestic battery manufacturing capabilities as demand for electric vehicles and energy storage continues to grow.

Standard Chartered acted as Joint Green Loan Coordinator, Lead Arranger and Lender, bringing together support from China Export & Credit Insurance Corporation (SINOSURE) and Finnish export credit agency Finnvera.

Alongside the financing package, the bank also provided a range of banking services including capital flows, foreign exchange and cash management.

The investment structure also incorporates renminbi, the official currency of the People's Republic of China.

Powering Europe's battery supply chain

The Kotka development is intended to help close one of Europe's most pressing energy transition challenges: securing reliable regional supplies of the battery materials needed for electrification.

By increasing European production of cathode active materials, the facility is expected to reduce reliance on imported components while strengthening supply chain resilience for manufacturers of electric vehicles and battery energy storage systems.

Eleanor Weir, Executive Director of Development & Agency Finance at Standard Chartered notes: “The energy transition will be shaped not only by the technologies we develop, but by our ability to build the industrial supply chains that support them.

“Easpring’s investment in Finland represents an important step in strengthening Europe’s battery materials ecosystem and creating the resilient supply chains needed for long-term sustainable growth," Eleanor says.

The company says the investment will also support Europe's wider transition towards a lower-carbon energy system by expanding access to critical battery materials manufactured within the region.

“This transaction shows Standard Chartered at its best: connecting clients, capital and strategic partners across markets to deliver financing for projects that matter," she continues.

“The involvement of Finnvera and Sinosure also underlines the vital role export credit agencies can play in unlocking long-term capital for strategically important industrial projects.”

Once the facility enters operation, it is expected to create around 270 permanent jobs while adding further momentum to Finland's growing battery manufacturing cluster.

The first phase of the plant will have the capacity to produce 60,000 tonnes of cathode active material each year, with scope for future expansion as European demand for batteries continues to increase.

Beyond supplying the electric vehicle sector, the additional production capacity is expected to support the wider deployment of battery technologies that underpin renewable energy integration and grid flexibility across Europe.

financing the energy transition responsibly

As Joint Green Loan Coordinator, Standard Chartered worked alongside Easpring Finland New Materials Oy to confirm that the project qualified as a clean transportation initiative under the Green Loan Principles.

The bank also helped structure the financing to align with internationally recognised sustainability frameworks including the IFC Performance Standards and the Equator Principles.

Backing from both SINOSURE and Finnvera further strengthened the financing package by improving lender confidence while enabling more competitive funding through diversified capital sources, favourable pricing and longer loan tenors.

The transaction highlights how cross-border financial partnerships are helping accelerate investment in the industrial infrastructure required to support Europe's energy transition, from battery materials production through to the resilient supply chains needed for long-term clean energy growth.