Two leading European banks have signed a €135 million (£121m) loan to support the development of a new factory in Central Poland, which will produce materials for electric vehicle (EV) batteries.
The joint financing comprises a €90 million (£81m) loan from the European Bank for Reconstruction and Development (EBRD) and a €45 million (£40m) loan from KfW IPEX-Bank.
The global chemicals and sustainable technologies group Johnson Matthey will use the funding for the construction of the factory, which will produce cathode materials for EVs.
The production capacity of the project will be 10,000 tonnes of batteries every year, enough for around 100,000 EVs.
The site, which will start production in 2022, has the potential to expand tenfold through further investment.
Grzegorz Zieliński, EBRD Regional Director Central Europe, commented: “We are very pleased to finance this landmark project, which marks a big step forward in making EVs not only an environmentally friendly, but also an increasingly competitive and attractive, alternative to traditional vehicles.“