Northvolt wants clarity on state aid for battery factory
Swedish investor Northvolt has called on the German government to quickly clear the way for the promised state financial aid for its planned battery factory in Heide, Schleswig-Holstein. His company now needs clarity on this issue within days, said Germany Managing Director Christofer Haux in the Frankfurter Allgemeine Sonntagszeitung newspaper. "We have no reason to doubt the existing commitments made to us by the German government, but it is also clear that we are not talking about weeks or months to find a solution."
As the newspaper reports, citing its own information, the issue concerns state financial aid of 550 million euros, which was previously to come from the Climate Transformation Fund. Following the budget ruling by the Federal Constitutional Court, it is unclear whether and how the money can actually be made available. The judges had declared the reallocation of funds in the federal government's financial planning inadmissible.
Meanwhile, the state parliament in Kiel passed an emergency motion on Thursday to take up to 137 million euros of promised state funds from an emergency loan for Ukraine if the funds still have to be provided this year. Parliament had previously declared a budget emergency for 2023 and 2024.
The newspaper also reported, citing informed circles, that a recently announced 600 million euro convertible bond from state bank KfW for Northvolt is not affected by the ruling of the constitutional judges. Northvolt plans to manufacture battery cells for electric cars at the factory in Heide 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.
- The need for clarification on the state aid for Northvolt's battery factory extends beyond just financial considerations, as the success of the entire Energy Industry relies on stable financing arrangements.
- The lack of clear guidelines on the Finances of the Climate Transformation Fund is causing concerns in the Industry, with Northvolt's battery factory in Heide being one of the potential beneficiaries.
Source: www.dpa.com
