Standard Chartered has announced the successful signing of a EUR 514 million multi-export credit agency (ECA) backed green financing package for Easpring Finland New Materials Oy. The financing supports the development of a state-of-the-art lithium-ion battery cathode active material (CAM) manufacturing plant located in Kotka, Finland.

Beyond arranging the financing, Standard Chartered provided a broad range of banking solutions spanning capital flows, cash management, and foreign exchange. The project also supports the internationalisation of the Renminbi (RMB), with RMB actively used within the investment structure.

Role of Standard Chartered and export credit agencies

Standard Chartered acted as Lead Arranger, Joint Green Loan Coordinator, and Lender in the transaction, which combines support from China Export & Credit Insurance Corporation (SINOSURE) and Finnvera, Finland’s export credit agency.

This collaboration between Chinese and Finnish agencies underscores the project’s strategic importance and enhances the competitiveness of the financing package by providing access to longer-term funding, attractive pricing, and diversified funding sources.

Eleanor Weir, Executive Director, Development & Agency Finance at Standard Chartered, said, “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.”

“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.”

Strategic importance of the Kotka facility

The project will fund a key facility to address Europe’s critical gap in battery materials supply. It aims to enhance the regional electric vehicle (EV) battery value chain and support Europe’s energy transition goals.

The Kotka plant showcases successful Sino-European collaboration in the new energy sector, blending China’s battery materials expertise with Europe’s need for secure and sustainable EV supply chains.

As Joint Green Loan Coordinator, Standard Chartered worked closely with Easpring Finland New Materials Oy to confirm the project’s eligibility under the Green Loan Principles, categorising it as a clean transportation initiative.

The financing structure complies with internationally recognised sustainability standards, including the Equator Principles and IFC Performance Standards.

Economic and environmental impact

Upon completion, the Kotka facility’s first phase is designed to produce 60,000 tonnes of CAM annually, with significant potential for future expansion in response to increasing European demand. This capacity will accelerate the transition to cleaner transport across Europe by bolstering the domestic battery materials ecosystem and supporting the EV market’s continued growth.

The facility is also expected to contribute substantially to Finland’s burgeoning battery ecosystem, creating approximately 270 permanent jobs once operational.