The funding round includes investments from former Swedish Army chief Major General (ret.) Karl Engelbrektson, entrepreneur Pär Svärdson and former EQT chief executive Thomas von Koch, alongside several Swedish family offices. Sweden Ballistics said Engelbrektson’s investment was made independently from the Finserve Global Security Fund, where he serves as head of the advisory board.
The company said it secured environmental permits from Sweden’s Land and Environmental Court in December 2025 and approval for the detailed development plan in January 2026. Sweden Ballistics added that the regulatory process for the project was continuing according to schedule.
According to the company, the funding will be used to complete the factory and strengthen European defence supply chains at a time of rising concerns over import dependency and long-distance shipping vulnerabilities. The facility is intended to support European ammunition production as governments across the continent increase defence spending and military manufacturing capacity.
“This investment comes at a historic moment for European defence. Across the continent, governments are rapidly expanding military production capacity in response to ongoing geopolitical tensions, record defence spending, and persistent ammunition shortages,” said Joakim Sjöblom, co-founder and chief executive of Sweden Ballistics.
“Europe has faced a critical shortage of energetic materials since Russia’s invasion of Ukraine, constraining ammunition output. SWEBAL’s facility is set to produce over 4,000 tonnes of TNT annually, supplying the explosives European manufacturers need to sustain rapidly expanding artillery shell production, drone munitions, mines and other crucial armaments,” Sjöblom added.
The company described the project as one of the most significant upstream defence industrial investments in Europe in recent decades. It said the facility would support efforts to strengthen European manufacturing capacity, collective security and strategic autonomy.
Once operational, the plant is expected to run continuously using European raw materials and machinery, reducing reliance on long-distance supply chains. Sweden Ballistics said full-scale production is planned for 2028 and that the project is now fully financed.
Sweden Ballistics, founded in 2024, said it was established to support NATO resilience and European security through large-scale ammunition production. The company said its activities are focused on addressing supply chain shortages, including limited production of critical materials such as trinitrotoluene, or TNT.
