German Manager Magazine: Northvolt decides to build a factory in Heide003037

The Swedish battery manufacturer Northvolt has decided to build a new factory in Heide, Schleswig-Holstein. This should create 3,000 jobs there, as well as thousands more jobs at suppliers and service companies, the company said on Wednesday upon request. A corresponding contract to carry out the major project has been signed. “In order to begin construction of the factory, the statutory resolutions of both municipalities and the building permits from the responsible authorities are still missing.” Construction should start promptly.

The Dithmarschen district has the greenest power grid in Germany, said Christofer Haux, Northvolt managing director Germany, with a view to a lot of wind energy in the region. His company wants to use green electricity to produce sustainable battery cells. These will then be installed in electric cars. Northvolt counts among others BMW, Volkswagen and Scania among its customers.

Federal Economics Minister Robert Habeck (54, Green Party) said in Berlin that such investments are important. Because the automotive industry is currently in the middle of a transformation. Because the sale of combustion engine models is finite, competitiveness must be secured, including with batteries for electric cars.

The EU Commission has already approved German state aid. In total, there are subsidies amounting to 902 million euros – 700 million of which are grants and 202 million are guarantees. “We have a lack of investment in Germany,” said Habeck. However, such subsidies would become more difficult in the future given the tight budget situation.

According to the EU Commission, the plant in Heide will be able to produce batteries for 800,000 to one million electric cars per year. Production is scheduled to start in 2026 and reach full capacity in 2029.

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