Northvolt builds battery plant in Schleswig-Holstein: EU approves 902 million euros in aid

Clear sailing for Northvolt: The Swedish battery manufacturer is building its first German battery plant in Schleswig-Holstein near Heide. A total of 4.5 billion euros is to be invested over the next few years, around 3,000 jobs are to be created and the plan is to produce cells for up to one million electric cars per year - an immense industrial project for the northernmost federal state.

Start of production from 2026

Northvolt plans to produce battery cells for electric vehicles in Europe at the factory, known as the Gigafactory, from 2026. The location in the district of Dithmarschen, which will be the company's first in Germany, was chosen in part because of the wind power, thanks to which production can be carried out with the lowest ecological footprint in continental Europe. The available area in Schleswig-Holstein and the central location between Scandinavia and southern Europe also contributed to the decision. The company is aiming for an annual production capacity of 60 gigawatt hours by 2029, and a facility for recycling used batteries is also to be built on the site.

According to Northvolt, it has already invested 100 million euros and plans to invest up to 2.5 billion euros. Further support has also been promised: The federal and state governments are funding the construction project with a total of 902 million euros. In January 2024, it was announced that the EU had approved the funding.

Battery production is of great importance for Europe

The construction of the Northvolt Gigafactory is considered a significant step because it will create another production site in Europe, resulting in greater independence from the USA and Asia. While the plans in Schleswig-Holstein are taking shape, other battery producers, such as car manufacturer Stellantis, are also looking for suitable locations for European production. Stellantis recently announced that it favors Zaragoza in northern Spain as the new location for its fourth European battery factory. Stellantis already operates three vehicle factories in Spain. The new factory is being planned together with the Chinese manufacturer CATL and will produce LFP (lithium iron phosphate) cells for electric cars.

Sources: battery-news, Cornelius Karow, 18.01.2024
pv-magazine, Ralph Diermann und Marija Maisch, 09.01.2024
ecomento, 15.01.2024 
Image: Northvolt