Invest in materials in Sweden

Pioneer the green and digital materials transformation

Why Sweden for materials 

Sweden’s materials ecosystem is built around long-term competitiveness rather than short-term advantages. Strong institutions, stable policy frameworks, and deep industrial expertise reduce risk for capital‑intensive investments and support scale over time.

  • Secure access to raw materials
    Sweden has the largest minerals and metals endowment in the EU, including iron ore, base metals, and emerging critical minerals, supporting supply security and resilience.
  • Fossil-free and competitive energy
    A power system dominated by non-fossil sources enables low‑carbon production of energy‑intensive materials and supports compliance with tightening climate regulation.
  • Advanced industrial capabilities
    Sweden combines mining, processing, manufacturing, and recycling in a tightly integrated system, enabling efficient value chain coordination.
  • Strong research and innovation base
    High research and development (R&D) intensity and close collaboration between industry, academia, and government accelerate materials innovation and industrial application.
  • Predictable business environment
    Transparent regulation, low corruption, and long-standing industrial policy support long-term investment decisions.
#1 Most innovative country in the EU
#1 Global Sustainable Competitiveness Index 2021
98% Electricity from non-fossil sources
93% EU iron ore production sourced from Sweden (2022)
A complete and futureready value chain 

Sweden offers end‑to‑end capabilities across the materials value chain, from extraction to circular reuse.

Raw materials and primary production

Sweden is the EU’s leading mining nation, producing a large share of European iron ore and holding significant shares of base and precious metals. The mining sector is characterised by early adoption of electrification, automation, and digital operations, supported by testbeds such as virtual and underground mines and close collaboration between industry, academia, and government.

Processing and materials production

The country hosts advanced smelting, refining, and materials processing operations across metals, chemicals, pulp and paper, and emerging battery materials. Access to fossilfree electricity and industrial process expertise supports energyintensive production, while ongoing investments target lowcarbon steel, cleaner refining, and electrified processing technologies. 

Advanced materials and manufacturing integration

Sweden’s materials producers operate near downstream industries such as automotive, energy, construction, and advanced manufacturing. This enables joint development of highperformance materials, rapid industrial testing, and integration with automated and digitalised production environments, particularly in steel, biobased materials, and battery components. 

Recycling and circular flows

Sweden treats circularity as an industrial capability rather than a pilot activity. More than 50 testbeds support reuse, recycling, and material recovery across metals, batteries, plastics, textiles, and biobased materials. These environments enable industrial validation, compliance with EU requirements, and the scaling of circular business models.

Sweden is a good end‑consumer market for new energy so being part of the ecosystem here is important for us on many different levels. Leia Deng, European Key Account Manager, Senior Technology Material
Sweden’s key materials hubs 

Sweden’s materials ecosystem is organised around specialised hubs that combine resources, industry, and research. Each hub offers clear entry points for investors.

Northern Sweden: Mining, green steel, and battery materials
Northern Sweden concentrates large‑scale mining, metals processing, and some of Europe’s most significant green industrial investments. The region combines access to raw materials, fossil‑free electricity, and industrial sites suited for energy‑intensive production, including green steel, battery materials, and midstream processing.

West and Central Sweden: Chemicals, metals, and industrial materials
This hub supports chemicals, specialty metals, and industrial materials production, with strong links between manufacturing, applied research, and export‑oriented industries. Established industrial players coexist with specialised small and medium-sized enterprises (SMEs), enabling supplier depth, process optimisation, and materials innovation.

Southern Sweden: Advanced materials research and bio-based innovation
Southern Sweden hosts world‑leading research infrastructure and strong bioeconomy clusters. The region supports materials analysis, biomaterials development, and circular solutions based on forest resources, nanotechnology, and bio‑based process technologies.

Eastern and Central Sweden (Mälardalen): Materials engineering and R&D 
The Mälardalen region combines materials engineering, digitalisation, and product development. It supports advanced materials R&D linked to electronics, energy systems, and industrial applications, with access to testbeds, automation expertise, and system integration capabilities.

Opportunities for investment and expansion 

Sweden provides multiple entry points for materials investments aligned with global demand for sustainable and resilient supply chains.

Green industrial production

Companies can establish or expand lowcarbon production in steel, chemicals, and advanced materials, supported by fossilfree power, electrification, and hydrogenbased process development. Several largescale projects are already under development. 

Processing and midstream capacity

There are opportunities to invest in refining, chemical processing, and battery materials to strengthen European supply chains. Sweden’s industrial base and policy alignment with EU initiatives support midstream expansion and reduced import dependency.

R&D centres and pilot facilities

Sweden’s open innovation model enables companies to locate R&D and pilot operations close to universities, research institutes, and more than 50 industrial testbeds. This reduces technical risk, supports industrial validation, and accelerates scaleup. 

Circular materials and bio‑based innovation

Invest in the development and scaleup of new materials designed for circularity from the outset. Sweden offers strong capabilities in biobased materials, advanced composites, and nextgeneration materials derived from forest resources and industrial byproducts. Research infrastructure, testbeds, and close industryacademia collaboration support industrial validation and transition from pilot to production.

Recycling and resource recovery

Invest in recovery, processing, and reuse of existing material streams such as metals, batteries, plastics, and textiles. Sweden provides mature recycling systems, industrial demand, and test environments that support efficiency improvements, compliance with EU requirements, and the scaling of resourcerecovery operations within established value chains.

Semiconductor materials and process technologies

Sweden offers specialised capabilities in semiconductor materials, process technologies, and systemlevel integration. Strengths include materials development, advanced manufacturing processes, and applied research linked to power electronics, photonics, and industrial applications, supported by close collaboration between industry and research environments.

How we help you establish and scale in Sweden 

We support international companies throughout the establishment and expansion process in Sweden. As a long‑term partner, we help you navigate local conditions, reduce risk, and move efficiently from planning to operation.

  • Market and opportunity assessment
    Assess market potential, policy conditions, and strategic fit for advanced manufacturing investments in Sweden and Europe.
  • Site selection and location analysis
    Compare locations based on talent availability, infrastructure, connectivity, and ecosystem strengths.
  • Partner and ecosystem introductions
    Connect with technology partners, research environments, innovation hubs, and public stakeholders.
  • Regulatory and stakeholder coordination
    Support dialogue with relevant authorities and help navigate regulatory and operational considerations.
  • Expansion and long‑term growth support
    Support follow‑on investments, scaling, and strategic repositioning over time.

Our role is to help you move forward with clarity and confidence. Support is tailored to your needs and delivered in close dialogue.

Frequently asked questions about materials

Is Sweden suitable for both large materials producers and scale-ups?

Yes. Sweden’s ecosystem includes global industrial leaders and innovative scale-ups, supported by research infrastructure and industrial clusters.

Can we combine extraction, processing, and manufacturing in Sweden?

In many cases, yes. Sweden offers integrated value chains that connect mining, processing, manufacturing, and recycling. 

How does Sweden support sustainable materials production?

Through fossilfree energy, strict environmental standards, and collaboration between industry, academia, and government. 

Are there opportunities linked to critical raw materials?

Yes. Sweden has significant potential in critical minerals and is aligned with EU efforts to strengthen domestic supply chains.

Can we access testbeds and pilot facilities quickly?

Yes. Sweden has a broad network of openaccess testbeds supporting materials development and scaleup.

What role can Business Sweden play during establishment?

Business Sweden coordinates stakeholders, supports site selection, and provides practical guidance throughout the process. 

Talk to me about materials
Program Manager Klas Ericson Phone +46 858866826
Business Sweden can support you

Across strategy, execution and risk as you invest in Sweden. If you are preparing for your next step, we are ready to discuss how we can support your plans.