Financing Woes Stall Nordcell’s 1.2-GW Solar Factory

• Nordcell Group AB’s 1.2‑GW GIGA ONE solar factory in Sweden is on hold amid financing woes and market headwinds, clouding timelines and Europe’s push to revive solar manufacturing.

Nordcell Group AB’s planned 1.2-gigawatt GIGA ONE solar panel factory in Sweden appears to be on hold, with the project hanging in the balance amid financing challenges and deteriorating market conditions. The company has struggled to secure the capital needed to advance the build-out, according to people familiar with the situation.

The pause underscores the mounting pressure on European solar manufacturing as weak margins, heightened competition and tighter funding conditions weigh on new capacity plans. It’s unclear when, or if, the project will resume, leaving Sweden’s hoped-for boost to domestic solar production uncertain and casting doubt on timelines previously signaled by the company.

What financing and policy avenues could revive Nordcell’s stalled Swedish gigafactory?

• Tap EU’s Temporary Crisis and Transition Framework to secure state-aid grants or tax relief tied to PV manufacturing lines, with fast-tracked approval if classed as strategic.
  
• Apply for Net-Zero Industry Act “Strategic Project” status to access accelerated permitting, priority grid connections, and eligibility for enhanced public support.
  
• Pursue European Investment Bank and Nordic Investment Bank loans with InvestEU or EKN (Swedish export credit agency) guarantees to lower borrowing costs.
• Structure blended finance: anchor EIB/NIB debt, InvestEU guarantee, plus mezzanine from EIF or climate funds to crowd in commercial lenders.
  
• Seek Swedish government capital support via Industriklivet (Industrial Leap), conditional on energy-efficiency and lifecycle carbon cuts in production.
  
• Issue a green or sustainability-linked bond with performance KPIs (local jobs, energy intensity), backed by SEK (Swedish Export Credit Corporation) liquidity lines.
• Negotiate equipment vendor financing and deferred payment schedules with tool suppliers to reduce upfront capex.
  
• Secure long-term offtake through advanced purchase agreements with European developers and utilities, with price-premium clauses for EU-made modules.
  
• Leverage public procurement: advocate for sustainability/traceability criteria in state and municipal solar tenders that recognize EU manufacturing resilience.
  
• Participate in EU or national “resilience bonus” schemes in renewable auctions that allow higher remuneration for domestically manufactured components.
  
• Access Horizon Europe and national R&D grants for high-efficiency cell tech, recycling, and low-carbon manufacturing to de-risk pilot-to-giga scale-up.
  
• Engage Swedish pension funds (AP-fonderna) and Nordic institutional investors as strategic equity, emphasizing industrial policy alignment and job creation.
  
• Explore a joint venture with upstream wafer or glass producers to secure inputs and attract EU value-chain funding packages.
  
• Lock in ultra-low-cost power via long-term PPAs with Nordic hydro/nuclear, enabling bankable operating margins and a green electricity label.
  
• Utilize accelerated depreciation or investment tax allowances at the national level to improve project IRR during ramp-up years.
  
• Work with municipalities on discounted industrial land, expedited zoning, and permitting one-stop shops to compress timelines and costs.
  
• Apply for EKN/EIB project finance guarantees tied to export targets, enabling higher leverage at investment-grade pricing.
  
• Pilot a phased build (assembly first, cells later) to cut initial capex, demonstrate yields, and trigger milestone-based funding tranches.
  
• Establish training partnerships with vocational institutes funded by EU Social Fund+ to meet skills requirements—a condition in some aid envelopes.
• Build a circularity revenue line (repair, refurb, recycling) to qualify for circular-economy grants and bolster cash flow in early years.