HomeTechNorthvolt to build a gigafactory in Germany after state aid commitment

Northvolt to build a gigafactory in Germany after state aid commitment

Northvolt, the largest in Europe battery manufacturer, has confirmed that it will build its next gigafactory in Heide, Germany, following the federal government’s commitment to provide state aid.

He advertisement It comes after several months of uncertainty. In March 2022, the Swedish manufacturer and the German state of Schleswig-Holstein signed a memorandum of understanding to build a factory in the region. But in October 2022, Northvolt said it could postpone the plan and prioritize a US expansion instead, unless the EU was willing to match GONNA higher subsidies for green technologies.

In response, the German government has now confirmed that it will finance the gigafactory under the Crisis and Transition Time Frame (TCTF): A new EU state aid scheme, designed to support the development of green projects in the face of respective US subsidies and Russia’s energy monopoly.

The funding must first be approved by Brussels, but the federal government said it is already “in the first constructive discussions” with the European Commission.

“Backed by this commitment from the federal government, Northvolt has decided to take the next steps towards our expansion in Heide,” said Peter Carlsson, the company’s founder and CEO.

The gigafactory will have an annual production volume of battery cells of 60 GWh, with the aim of supplying approximately 1 million electric vehicles. It is expected to unlock billions of euros in private investment and create 3,000 direct jobs with thousands more estimated in the surrounding industry and service sector.

“With the next steps regarding Northvolt, Germany can look forward to one of the most important lighthouse projects of the energy and transport transition,” said Robert Habeck, Germany’s vice chancellor and economics minister.

In addition to Commission approval, the gigafactory still requires preparatory work on the site for construction and final building permission. Deliveries of the first battery cells are expected in 2026.

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