Stockholm-based defense startup SWEBAL has raised €3 million in strategic funding to establish Sweden’s first TNT manufacturing facility in over three decades.
The round saw participation from notable investors including former Swedish Army Chief Major General (ret) Karl Engelbrektson, Apotea founder Pär Svärdson, and EQT co-founder Thomas von Koch.
Aiming to reduce Europe’s explosive supply gap
SWEBAL was founded in 2024 by Joakim Sjöblom, previously founder of Minna Technologies, and Carl Duforce. The startup is addressing a critical shortage in Europe’s TNT supply — the continent currently produces only 6,000 tonnes annually, compared to Russia’s 50,000 tonnes.
The new plant, set to be built in Nora, Sweden, will aim to produce over 4,000 tonnes of TNT annually, increasing regional supply by 75%. The facility will operate around the clock and employ 50 people, with full-scale production targeted by late 2027.
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Funding to accelerate development and construction
This latest investment will support facility planning, environmental approvals, and preparation for construction. SWEBAL submitted final documents to the Swedish Court of Environment in March 2025 and expects to break ground by the end of the year.
Strengthening European defense resilience
SWEBAL previously raised €1M in November 2024 and came out of stealth mode earlier this year. The startup’s goal is to strengthen NATO’s ammunition production capabilities by localizing supply chains and reducing reliance on fragile global logistics.
Investors view the initiative as both a strategic and high-potential commercial move. “It feels natural to invest in the Swedish defense industry — both to contribute and because it could potentially be a very smart investment,” said Svärdson.
