Explosives manufacturer Sweden Ballistics (SWEBAL) has signed a letter of intent (LoI) to supply domestically produced trinitrotoluene(TNT) to a Swedish-Ukrainian joint venture (JV), Scandinavian X, for use in upcoming drone systems.
The LoI aims to reinforce defence supply chains across Europe.
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SWEBAL is set to commence TNT deliveries to Scandinavian X in 2028, supplying both NATO markets and Ukraine.
SWEBAL CEO and co-founder Joakim Sjöblomsaid: “We are proud to contribute to re-establishing Swedish production of strategic explosives. Our goal is to deliver the highest quality using modern technology, thereby enabling the systems and equipment that an effective defence needs.”
Scandinavian X was formed recently through a partnership involving Front Ventures, Skygaard Defense Solutions, and Hede Capital.
The JV was formally announced on 23 October 2025 by Front Ventures, confirming collaboration with its partners to establish the new company.
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By GlobalDataScandinavian X plans to manufacture drones in Sweden based on technology from Ukrainian manufacturer Vluchnyk.
This initiative will result in the first Swedish-Ukrainian drone factory in the Nordic region using NATO-standard components.
Currently, construction of SWEBAL’s manufacturing facility is underway in Nora, Sweden with completion scheduled for 2028.
Once operational, the factory will become one of the few sites in Europe to produce TNT, addressing a significant supply chain gap for both military and civilian applications.
Until SWEBAL’s production begins, Scandinavian X will continue sourcing TNT from a Ukrainian supplier.
Front Ventures CEO and Scandinavian X board chairman Jonas Malmgren said: “This collaboration is an important step in strengthening both Swedish and European capacity in defence production. Domestic production of TNT means greater independence, shorter supply chains and more secure access for our future customers in NATO and Ukraine.”
The partnership between SWEBAL and Scandinavian X follows an earlier announcement by the former regarding a €3m ($3.5m) strategic investment round. SWEBAL secured the investment from former Sweden Army Chief Major General (ret) Karl Engelbrektson, and Thomas von Koch, the founding member and former CEO of EQT, a private equity firm.
Recently, Finland, Sweden, Norway and Denmark announced collaboration for the joint procurement of uncrewed aircraft systems and related technologies.
