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Regional development struggle around Northvolt echoed

Northvolt is advancing in the construction of a battery plant near Heide; however, the necessary expansion of local infrastructure lags behind, according to complaints from the industry.

View of the Northvolt Three Gigafactory construction site.
View of the Northvolt Three Gigafactory construction site.

Economic organizations are calling for a boost in regional development due to the building of Northvolt's battery factory in Heide. The Flensburg Chamber of Commerce, the Unterelbe-Westküste Business Association, and the Dithmarschen Chamber of Crafts explained on Wednesday that the neglected railway system in Schleswig-Holstein could hinder not only Northvolt's logistics plans but also obstruct the overall economic development of the area. While preparations for the multi-billion-euro project are progressing rapidly, the necessary conditions for the area as a whole to profit from the huge undertaking are not yet in place.

The associations emphasized the importance of infrastructure expansion, as well as the need for growth in social infrastructure like housing, kindergartens, and schools. The state had previously pledged to establish a project office in October, but the participating parties had not yet reached a consensus on the structure and funding. The associations added that such delays were not only unacceptable due to external scrutiny but also required an immediate resolution and the rapid formation of the project office in Heide.

There seems to be a lack of experience in managing complex industrial settlements of this magnitude, despite high engagement and dedication from local stakeholders. According to a Northvolt spokesperson, over 1,000 piles have been laid for the foundations of the plant. Christofer Haux, Northvolt's Germany CEO, stated that the associations' assessment was accurate: "We've always emphasized that a factory like this also requires a large-scale infrastructure. A project office could really contribute to solving various challenges more efficiently."

The Schleswig-Holstein Economics Minister, Julia Carstens (CDU), acknowledged during a parliamentary committee meeting that the project office should not just focus on Northvolt but also on potential follow-up businesses and broader structural effects. The region will present a definite plan for the office to the state by June 12th. Carstens addressed the traffic implications of the construction work, stating that measures were being taken to ensure a smooth movement of traffic to the construction site and to reduce the impact on surrounding roads. She explained that this included the development of traffic-friendly junctions, widening of the B203 federal highway, construction of access roads, and installation of traffic lights.

The opposition criticized the state government for a lack of urgency in constituting the project office. "The state is not showing any momentum when it comes to setting up a project office for the Northvolt settlement," said former Economic Minister Bernd Buchholz (FDP). "It seems that no resources have been allocated, and the need for a professional team with an experienced industrial manager at the helm, as I advocated last year, is either not recognized or still being deliberated." However, local involvement in the project is impressive, noted SPD economic politician Kianisch Stender, who complained that the formation of an office is advancing at a slow pace. "A meeting involving local actors and the state about this issue occurred on January 17."

Northvolt plans to manufacture up to one million battery cells for electric vehicles yearly at its Heide site. The groundbreaking for the 4.5 billion euro project took place at the end of March, attended by Chancellor Olaf Scholz (SPD) and Federal Economics Minister Robert Habeck (Greens). This factory will create 3,000 jobs. The federal and state governments are funding the battery plant with approximately 700 million euros. There are also potential guarantees of 202 million euros that need to be approved.

Read also:

  1. The IHK in Schleswig-Holstein, alongside other economic organizations, advocates for enhanced infrastructure in the region to support Northvolt's billion-euro project and foster overall development in Dithmarschen.
  2. The Flensburg Trade Association, along with the Unterelbe-Westküste Business Association and Dithmarschen Chamber of Crafts, emphasized the necessity of infrastructure expansion and social infrastructure growth, including housing, kindergartens, and schools, for the area to benefit from Northvolt's battery factory.
  3. Despite the swift advancements in Northvolt's multi-billion-euro project, the Schleswig-Holstein Economics Minister, Julia Carstens, acknowledged that a project office should focus not only on Northvolt but also on potential future businesses and wider structural impacts.
  4. Justice Minister Bernd Buchholz from the FDP criticized the state government for inadequate urgency in establishing the project office for Northvolt, pointing out the need for a professional team with an experienced industrial manager.
  5. The Justice Minister acknowledged that measures were being implemented to ensure smooth traffic to the construction site and lessen the impact on surrounding roads, including the development of traffic-friendly junctions, widening of the B203 federal highway, construction of access roads, and installation of traffic lights.
  6. Northvolt's Germany CEO, Christofer Haux, highlighted the need for a project office to address various challenges more efficiently, as the factory's construction requires not just a battery plant but also substantial infrastructure.

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