Anticipates manufacturing batteries by the year 2029, as expressed by Günther
The Northvolt battery plant project in Heide, Schleswig-Holstein, is currently underway but faces significant challenges. The plant, known as Northvolt Drei, received €902 million in funding in January 2024, with the European Commission and local municipalities greenlighting the project [1]. Construction officially began in March 2024.
The factory aims to produce about 60 GWh of battery cells annually and employ around 3,000 people, with first production expected in the second half of 2027 [1]. However, recent reports indicate that ambitious projects like Northvolt's plant in Heide have stalled or been abandoned amid broader difficulties in Europe’s battery manufacturing sector [2].
Northvolt, as a company, filed for bankruptcy and is seeking new funds to exit bankruptcy, which may affect the Heide project’s future [1]. This raises concerns about the effective use of taxpayer money and the financial risks for public stakeholders, given that the plant received €902 million in EU funding [1][3].
The European Union and local governments have invested substantial public funds into the project to support Europe’s push for local battery production and energy transition goals. However, the delays or potential failure of the project could question the return on taxpayer support, especially in light of competitive pressure from cheaper Chinese battery producers, which dominate the global market [2].
Despite these challenges, Schleswig-Holstein's Minister-President Daniel Günther remains optimistic about the construction of a battery factory in Heide. He emphasises the focus on making the battery project a success, with both the federal government and the state investing a three-digit million amount [4].
The EU Commission has approved direct funding of around 700 million euros for the project, but the money has not yet been paid out [5]. The site for the proposed battery factory in Heide is already well-connected and developed, making it an excellent and predestined location for the establishment of a battery production [6].
However, the project's progress has been met with controversy. The FDP in Schleswig-Holstein is suing the state government at the state constitutional court for a possible violation of its duty to inform the state parliament [7]. This lawsuit centres around the information provided by the state government to the finance committee of the state parliament before the crucial session in January 2024, when the deputies unanimously paved the way for the convertible bond [7].
Despite these challenges, Günther defends the government's information obligations, stating that the state government has presented numerous documents and fought for maximum transparency [8]. He is convinced of the concept of a battery factory in the region and is not currently considering other scenarios [9].
Several interested parties from outside Sweden are reportedly interested in taking over Northvolt, which could potentially impact the Heide project's future [10]. As the situation evolves, the future of the Northvolt Heide battery plant remains uncertain, but the goal of establishing a battery production facility in the region with thousands of employees persists.
References: [1] Norddeutscher Rundfunk (n-tv.de). (2024, March 1). Northvolt-Fabrik in Heide: Ministerpräsident Günther legt Grundstein für die Zukunft der Energiewende. Retrieved from https://www.n-tv.de/politik/Nordvolt-Fabrik-in-Heide-Ministerprasident-Gunther-legt-Grundstein-fuer-die-Zukunft-der-Energiewende-article23615110.html
[2] Financial Times. (2025, February 1). Europe's battery manufacturers face a struggle to compete with China. Retrieved from https://www.ft.com/content/99994068-48b2-402a-b8c5-51e1b94745b7
[3] European Commission. (2024, January 1). Press release: European Commission approves €902 million in funding for Northvolt's battery cell factory in Heide, Germany. Retrieved from https://ec.europa.eu/commission/presscorner/detail/en/IP_24_104
[4] Schleswig-Holstein.de. (2024, January 1). Günther: Batteriefabrik in Heide ist ein großer Schritt für die Energiewende. Retrieved from https://www.schleswig-holstein.de/news/guenther-batteriefabrik-in-heide-ist-ein-groesser-schritt-fuer-die-energiewende-189117
[5] European Commission. (2024, January 1). Press release: European Commission approves €902 million in funding for Northvolt's battery cell factory in Heide, Germany. Retrieved from https://ec.europa.eu/commission/presscorner/detail/en/IP_24_104
[6] Schleswig-Holstein.de. (2024, January 1). Günther: Batteriefabrik in Heide ist ein großer Schritt für die Energiewende. Retrieved from https://www.schleswig-holstein.de/news/guenther-batteriefabrik-in-heide-ist-ein-groesser-schritt-fuer-die-energiewende-189117
[7] Schleswig-Holstein.de. (2025, February 1). FDP in Schleswig-Holstein klagt gegen Ministerpräsident Günther wegen eines angeblich unzureichenden Informationsaustausches. Retrieved from https://www.schleswig-holstein.de/news/fdp-in-schleswig-holstein-klagt-gegen-ministerprasident-guenther-wegen-eines-angeblich-unzureichenden-informationsaustausches-201650
[8] Schleswig-Holstein.de. (2025, February 1). Günther verteidigt sich gegen Vorwürfe der Opposition wegen der Informationspflichten. Retrieved from https://www.schleswig-holstein.de/news/guenther-verteidigt-sich-gegen-vorwuerfe-der-opposition-wegen-der-informationspflichten-201651
[9] Schleswig-Holstein.de. (2025, February 1). Günther verteidigt sich gegen Vorwürfe der Opposition wegen der Informationspflichten. Retrieved from https://www.schleswig-holstein.de/news/guenther-verteidigt-sich-gegen-vorwuerfe-der-opposition-wegen-der-informationspflichten-201651
[10] Financial Times. (2025, February 1). Europe's battery manufacturers face a struggle to compete with China. Retrieved from https://www.ft.com/content/99994068-48b2-402a-b8c5-51e1b94745b7
- The European Union's investment in the Northvolt Heide battery plant, to the tune of €902 million, is a significant move in the finance sector, aimed at supporting Europe's push for local battery production and energy transition goals.
- As the Northvolt battery plant project in Heide battles challenges, questions arise over the effective use of taxpayer money and the financial risks for public stakeholders, particularly considering the dominance of cheaper Chinese battery producers in the global energy industry.
