Doubts had grown, but now there are positive signals: The Northvolt group is taking further steps to build a battery factory on the North Sea coast.
The Swedish group Northvolt is building a multi-billion dollar battery cell factory for electric cars in Schleswig-Holstein. The Federal Ministry of Economics, the state government and Northvolt announced on Friday that the state’s promotion of the settlement is still subject to approval by the EU Commission.
“In the case of Northvolt, the grant will unlock multi-billion dollar private investment that will create 3,000 direct jobs in Heide and thousands more in the surrounding industry and service sectors,” the statement said. The aim is for the first battery cells to leave the factory in Heide, about 100 kilometers north-west of Hamburg, in 2026.
Investment volume for Heide up to 4.5 billion
The annual production volume after the factory is ramped up should be 60 gigawatt hours and supply around one million electric vehicles with battery cells. “We are grateful for all the efforts that have been made so far by the federal government, the Schleswig-Holstein state government, the EU Commission and locally in Dithmarschen,” said Northvolt boss Peter Carlsson. “With this commitment from the federal government behind us, Northvolt has decided to take the next steps for the expansion in Heide.”
Carlsson had signaled some time ago that construction could be delayed. He cited the comparatively high electricity prices in Germany and higher subsidies in the USA as reasons. The company could therefore settle there first. Up to 4.5 billion euros were mentioned as an investment volume for Heide. According to information from the German Press Agency, Northvolt is now considering tackling two construction projects. In addition to Heide, there are locations in the USA and Canada to choose from.
Northvolt wants to advance the preparations for the construction in Schleswig-Holstein and obtain the final building permit. According to the announcement, all those involved are striving to meet these requirements this year so that construction work can begin. Northvolt had emphasized the locational advantages of the North Sea coast. A lot of wind power is generated there on land and at sea – which the factory needs in large quantities.
Lighthouse project of the energy and transport transition
Funding based on the “Temporary Crisis and Transition Framework” (TCTF) is being prepared for the project. This is the framework under state aid law that the EU states can use when designing their support measures. If the EU Commission approves the financing, the TCTF will be applied in Germany for the first time. The federal government and the EU Commission are in initial constructive talks, it said.
Germany can look forward to one of the most important lighthouse projects in the energy and transport transition, commented Federal Minister of Economics Robert Habeck. Green Federal leader Omid Nouripour spoke of a confirmation for the location Germany. “The company’s batteries for electric cars and energy storage are a key technology for the climate-friendly conversion of our economy.”
Prime Minister Daniel Günther said that Habeck had given excellent support to the project at federal level. It is great that the EU has paved the way for settlement with the TCTF and has given an answer to new US subsidies in a very short time.
Source: Stern
