The green light has been given for one of the largest industrial projects in the northern German state of Schleswig-Holstein in decades: The Norderwöhrden municipal council has approved the plans of Swedish company Northvolt to build a battery factory near the town of Heide by four votes to three. The second local authority, Lohe-Rickelshof, had already passed the corresponding resolutions unanimously last week.
Northvolt plans to manufacture battery cells for electric cars in the factory from 2026. The 4.5 billion euro investment is expected to create 3,000 jobs. The company has already invested around 100 million euros of its own funds in the construction project in Heide, according to sources close to the project. A facility for recycling old batteries from discarded electric cars is also planned.
Northvolt made its final decision in favor of the site last week with the signing of an implementation agreement. Some time ago, it had looked as if construction in northern Germany might be delayed. Northvolt CEO Peter Carlsson had cited the comparatively high electricity prices in Germany and higher subsidies in the United States as reasons for this.
On January 8, the European Commission approved the 902 million euros in subsidies and guarantees from the German federal government and the state government for Northvolt.
They are supporting the project with around 700 million euros. There are also guarantees for a further 202 million euros. Of the funding, around 564 million euros will be provided by the federal government and up to 137 million euros by the state. The funding will be spread over several annual tranches.
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