The federal and state governments have approved funding of 155.4 million euros for the planned battery cell plant on the west coast of Schleswig-Holstein. Federal Minister of Economics Robert Habeck (52) handed over a corresponding funding decision to the Swedish company Northvolt on Wednesday. That is the maximum that the EU has approved, according to Habeck. Schleswig-Holstein contributes around 30 percent of the funding, i.e. around 46.6 million euros.
Of the VolkswagenPartner Northvolt, in which the carmaker has a 20 percent stake, wants to start manufacturing battery cells near Heide in Dithmarschen in 2025 and signed a letter of intent with the state in February. According to the Ministry of Economic Affairs, the final location decision should be made in July. “On the way there, there are still final questions to be clarified, with which the state and federal government will provide active support,” says Berlin.
“Locally generated renewable energy should drive production,” stressed Green Party politician Habeck. Renewables are now an important economic factor. “Where wind and sun are turned into electricity, there are also good conditions for energy-intensive companies.” Northvolt even expressly named renewable energies as one of the most important reasons for the location decision.
Construction work is scheduled to begin in 2023
The state aid comes from a major European project “Important Projects of Common European Interest” (IPCEI) to promote battery cell production in the EU. In this way, Europe wants to become less dependent on deliveries from Asia. According to the Ministry of Economic Affairs, investments of more than 15 billion euros in battery cell plants have been announced by 2030. There will be further investments in the areas of raw materials, battery materials, components and recycling.
Construction work for the factory is scheduled to begin in the second half of 2023, with production starting in 2025. The project should cost a total of 4.5 billion euros, of which Northvolt wants to raise around two billion euros itself. The Swedes still have to collect the rest from investors. After completion, about 3000 people will work in the factory.
It is one of the largest industrial settlements in Schleswig-Holstein. The state government is counting on the Northvolt factory having a pull effect and attracting other companies, for example as suppliers, along the Heide-Hamburg axis. This would finally transform the once structurally weak region into an important industrial center.