Easpring Secures €514m for Finnish Battery Plant

Standard Chartered has successfully signed a €514m (US$587.6m) multi-export credit agency backed green financing package for Easpring Finland New Materials Oy. 

The financing is expected to fund the construction of a facility that intersects in key areas such as supply chain, resilience and battery value chain.

Acting as a Joint Green Loan Coordinator, Lead Arranger and also Lender for the financing, Standard Chartered combines support from China Export & Credit Insurance Corporation (SINOSURE) and also Finnish export credit agency Finnvera. 

In addition to this, the bank provided a range of financial solutions spanning typical bank offerings, such as capital flows, foreign exchange and of course cash management. 

Renminbi, the official currency of the People’s Republic of China, is also supported – as it is actively being used in the investment structure. 

Key areas of improvement

When completed, the facility will address a European supply chain gap for critical battery materials. It will also provide other long-term benefits such as strengthening the resilience of the regional electric vehicle battery value chain.

Eleanor Weir, Executive Director, 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. 

The company also notes that the continent’s long-term energy transition will be supported by the facility. 

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

“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 operational, the Kotka facility is set to create around 270 permanent jobs while significantly boosting Finland's expanding battery ecosystem. 

In its initial phase, the plant is slated to manufacture 60,000 tonnes of cathode active material (CAM) annually, with room for further expansion to match Europe's rising demand. 

This project will ultimately play a crucial role in reinforcing the continent's regional battery materials supply chain, driving EV market growth and speeding up the transition to eco-friendly transportation.

Ensuring regulatory compliance  

Standard Chartered, serving as Joint Green Loan Coordinator, collaborated with Easpring Finland New Materials Oy to verify the project's eligibility as a clean transportation initiative under the Green Loan Principles. 

The bank also guided the structuring of the financing to ensure compliance with international sustainability benchmarks, including the IFC Performance Standards and Equator Principles.

Furthermore, the joint backing from SINOSURE and Finnvera bolstered lender confidence and made the financing package highly competitive by securing diversified funding options, favorable pricing, and extended loan terms.