Lantmännen secures EIB loan to build pea protein plant in Sweden

The European Investment Bank (EIB) has granted a €50 million (US$54 million) loan to Lantmännen to help finance the construction of Sweden’s first large-scale pea protein isolate factory. The facility, to be built in Lidköping, will process over 40,000 tons of locally grown peas annually and is expected to begin operations in the first half of 2027.

The loan will cover approximately half the cost of the project and aims to bolster European food security, enhance agricultural sustainability, and support climate goals. Lantmännen is a Swedish agricultural cooperative owned by 18,000 farmers and has long been involved in crop production and food manufacturing.

“This project is also a great example of how EU cooperation can deliver benefits on the ground,” commented EIB Vice President Thomas Östros. “By supporting Lantmännen’s investments in pea protein production, we will strengthen both food security and climate action in Sweden and across the European Union.”

The new facility is expected to create around 30 jobs in the region and will focus on producing high-quality plant proteins for use in a wide range of applications. These include protein bars, ready-to-drink shakes, plant-based milks, baked goods, and meat alternatives. The factory's output is intended to serve both the domestic market and exports.

According to the EIB, the project aligns with EU goals of increasing plant protein self-sufficiency and reducing reliance on imports such as soybeans, which are commonly used in food and feed. The pea crop, in particular, is noted for its low environmental footprint. Peas and other legumes typically require minimal water and fertilizer inputs and contribute positively to soil health and biodiversity.

The use of Swedish-grown peas means the factory will offer a lower-carbon alternative to imported protein ingredients, helping to reduce emissions associated with long-distance transport. The facility will process peas grown by members of the Lantmännen cooperative, providing a market outlet for farmers while supporting sustainable agriculture practices.

“We are delighted that the EIB recognises the long-term value of investment in the food of the future – plant protein – and that it has chosen to support our Lidköping facility,” added Michael Sigsfors, Chief Financial Officer of Lantmännen. “Promoting exports and expanding food production not only leads to better profitability for farmers, but also ensures improved food security. This is a grand and important project, and I am happy that the EIB is supporting our work to this end."

The initiative is part of Lantmännen’s broader strategy to develop high-value food ingredients with a lower environmental impact. The company sees pea protein as a critical tool in the shift toward more sustainable diets and a way to support European agriculture’s transition in line with EU policy objectives.