ELMED and Autoliv anchor a broadening Tunisia–Sweden partnership in energy and industry

Two projects confirmed in late June 2026 — one reshaping the Mediterranean energy map, the other deepening Swedish industrial roots in Tunisia — have brought the bilateral partnership between Tunis and Stockholm into sharper focus.

ELMED: Europe's first direct current link to Africa

ELMED is a planned energy bridge between Italy and Tunisia that will link the two vast electricity systems of Europe and North Africa, and will be the first direct-current connection between the two continents. The power line will run from the electrical substation at Partanna in Sicily to the substation at Mlaabi on the Tunisian peninsula of Cap Bon, for a total length of 220 km, around 200 km of which will be submarine cable.

The ELMED interconnection will use high-voltage direct current technology and will have a bidirectional capacity of 600 MW. It is set for completion in 2028 and will allow two-way electricity flows and imports from Tunisia to the Italian and European electricity market.

ELMED is part of a total investment estimated at €1.42 billion, of which €307 million was allocated by the European Commission through the Connecting Europe Facility programme managed by CINEA. European funding stands out because it is the first time the European Union has supported a power interconnection project involving a non-member country.

Team Europe has mobilised €472.6 million, including €334.6 million in EU grants, to support the Italy–Tunisia electricity interconnection. The project is also supported, on the Tunisian side, by additional European and international financial institutions including the World Bank, the European Investment Bank, the European Bank for Reconstruction and Development and KfW.

Hitachi Energy and Prysmian take the lead contracts

Terna, which manages the Italian national electricity transmission grid, and STEG, the Tunisian electricity and gas grid operator, have awarded Hitachi Energy a contract worth approximately €770 million for the construction of the converter stations for ELMED. The awarding marks the completion of the procurement process for the first high-voltage direct current submarine link between Europe and North Africa.

Hitachi Energy will provide the HVDC solution, combining its expertise in HVDC converter valves, its MACH digital control platform, power transformers and high-voltage switchgear, and will also deliver system studies, design and engineering, supply, installation supervision and commissioning services. Other consortium members include D'Agostino Costruzioni Generali for the Partanna station and Orascom Construction for the Mlaabi station, which will mainly undertake civil works, electromechanical installations and auxiliary systems.

The submarine cable contract has been awarded to Prysmian, which received the notice to proceed for construction of the ELMED subsea power interconnection from Terna and STEG. The contract is worth around €460 million.

Separately, on 15 January 2026, Tunisia and the European Bank for Reconstruction and Development signed a €43 million financing and guarantee agreement for ELMED 2, the second phase of the interconnection focused on domestic Tunisian grid reinforcement. That project focuses on reinforcing the electricity transmission network through the installation of 400 kV overhead lines, notably an 85 km link between Grombalia and Kondar.

What ELMED means for Tunisia

ELMED positions Tunisia as a future energy hub capable of facilitating electricity exchanges between continents and, in the longer term, of exporting electricity generated from renewable sources to Europe.

The Italian ambassador to Tunisia, Alessandro Prunas, has said that ELMED will primarily contribute to strengthening Tunisia's energy security, enabling diversification of supply sources and encouraging new investments. The interconnection will allow the country to import energy at market prices during times of peak demand and, in the long term, could transform Tunisia into an exporter of electricity produced from renewable sources once domestic needs are met.

During the Tunisia Investment Forum held in June 2026, a memorandum of understanding on a strategic partnership to promote and develop renewable energy investment potential was also signed between Tunisia and the European Union, confirming European support for Tunisia's 35 percent renewable energy objective by 2030.

Autoliv: 84 million dinars and a fully localised production line

Swedish automotive safety systems leader Autoliv officially inaugurated the extension of its El Fahs facility in the Zaghouan governorate on 25 June 2026, backed by an investment of 84 million Tunisian dinars. The expansion marks a strategic transformation for the site, shifting it from a finishing workshop into a fully integrated manufacturing hub for steering wheels designed for leading international automakers.

Until now, the El Fahs plant primarily handled finishing operations, relying on magnesium structures imported from Europe. With this new investment, Autoliv has localised the entire production chain in Tunisia. The facility now manages the complete process — from raw material melting and moulding, to precision leather wrapping, integration of electronic components and final assembly.

The expansion leverages Industry 4.0 technologies, featuring smart, highly automated and heavily digitised production lines. The unit will be the first in Africa to manufacture automobile steering wheels using exclusively clean energy and magnesium, positioning itself as a model green factory on the continent.

Autoliv operates in 28 countries through 64 production sites and manufactures around 7 million automotive steering wheels annually, including 4 million produced in Tunisia and entirely destined for European markets. The group has maintained a presence in Tunisia since 1998, with the country now standing as one of its primary production platforms serving the European market. With major operations in El Fahs and Ennadhour, the group employs over 4,500 people in Tunisia.

The inauguration was presided over by Salah Zouari, Tunisia's acting minister of industry, mines and energy. The extension reinforces Tunisia's broader industrial ambitions: the country's automotive sector currently brings together nearly 300 companies, generates more than 120,000 jobs and ranks among the top contributors to national industrial exports.

A partnership built on industry and energy

Connections between Sweden and Tunisia date back to 1736, when the Swedes concluded a treaty of peace and trade with the Beylik of Tunis. Formal relations began after Tunisian independence from France in 1956. The Swedish embassy in Tunis, which closed in 2001, was reopened in 2016 in the presence of the foreign ministers of both countries.

The current phase of the relationship is defined by concrete industrial and energy commitments rather than diplomatic statements alone. Autoliv's expanding manufacturing base in Zaghouan and Hitachi Energy's leading role in the ELMED converter infrastructure together place Swedish-linked capital at the centre of two of Tunisia's most strategically significant investment stories of 2026.

On the institutional side, bilateral relations benefit from regular political dialogue between the foreign ministries of both countries, with discussions covering digital transition, governance, mobility, scientific research and sustainable development.

ELMED is scheduled to enter service by the end of 2028. The Autoliv El Fahs expansion is already in production.