BRUSSELS, May 16 (Xinhua) -- The European Investment Bank (EIB) gave its approval in principle on Thursday to help finance Europe's first home-grown gigafactory for lithium-ion battery cells, Northvolt Ett, in Sweden.

The batteries from Northvolt Ett's batteries are used in automotive, grid storage, and industrial and portable applications. Ramping up to full capacity, Northvolt Ett will produce 32 GWh of battery capacity per year.

"The development of a competitive and green battery value chain within Europe can not only cut greenhouse gas emissions by decarbonising power generation and transport, but can also help protect millions of well paid jobs in European industries in the face of increasing global competition," said EIB vice-president Andrew McDowell.

According to him, the 350-million-euro loan to Northvolt approved in-principle on Thursday "is the largest ever direct EIB financing approval for battery technology, and we look forward to working with Northvolt over the coming months to finalise contracts."

Once the loan agreement is in place, the European Fund for Strategic Investments (EFSI) -- the main pillar of the Investment Plan for Europe -- will contribute to the project's financing.

The Investment Plan for Europe is one of the European Commission's top priorities. It focuses on boosting investment to generate jobs and growth by making smarter use of new and existing financial resources, removing obstacles to investment, and providing visibility and technical assistance to investment projects.

As of April 2019, the Plan had mobilised almost 393 billion euros (440.45 billion U.S. dollars) of additional investment, including 10.7 billion euros in Sweden. The plan currently supports 945,000 small and medium-sized businesses across Europe. (1 euro = 1.12 U.S. dollar)