The Vice-Chancellor and Federal Minister for Economic Affairs and Climate Action, , today handed over an approval notice for funding worth 155.4 million euros to the Swedish company Northvolt. The company plans to set up a large battery cell production facility in Germany, which is expected to be built in the federal state of Schleswig-Holstein. The Federal Ministry for Economic Affairs and Climate Action is supporting this project under the second large-scale European project on battery cell production (Important Projects of Common European Interest, IPCEI). Some 30 percent of the funding is provided by the state of Schleswig-Holstein.
Minister Robert Habeck said: "I am very pleased that Northvolt is considering Schleswig-Holstein as a potential location for its planned large-scale manufacturing plant for sustainable battery cells. The company wants to use locally generated renewable energy to power the plant. All this shows that Germany is an attractive location for forward-looking industries and that renewables have become a significant economic factor. In areas where electricity is generated from wind and solar power, there are good conditions not least for energy-intensive companies. Northvolt's investment will give a further boost to electric mobility in Germany, make us less dependent on imports and create around 3,000 jobs locally. This is truly building a visionary future”.
The Minister-President of Schleswig-Holstein, Daniel Günther, spoke of this project as an outstanding flagship. The funding approval granted to Northvolt under the second battery IPCEI is a major step towards the realisation of the project. Minister-President Günther stressed that the project “is significant for the whole of Germany with a view to achieving our economic, energy policy and climate goals.” Our ambition, he said, must be to "leave the fossil age behind us quickly and sustainably, and to do so without sacrificing prosperity."
Once completed, the factory will be one of the largest battery cell production facilities in Germany. It will be able to supply sustainable batteries for hundreds of thousands of electric vehicles per year. The investment shows that Germany is becoming a hub for the European battery industry. In fact, investments worth over 15 billion euros have been announced for battery cell plants for the period up to 2030 alone and further investments will be made in the areas of raw materials, battery materials and components, and recycling. The Federal Ministry for Economic Affairs and Climate Action is supporting the development of a battery ecosystem and the battery industry by providing funding assistance and fostering networking and European coordination.
Northvolt signed a Memorandum of Understanding with the state of Schleswig-Holstein in February and plans to take its final decision on the site for the plant in July 2022. Until then, the state of Schleswig-Holstein and the Federal Government will provide active support to help resolve the last outstanding issues.