Northvolt Reinvites Schleswig-Holstein Government to Explore Gigafactory amid Financial Woes
Swedish battery manufacturer Northvolt has reiterated its invitation to the Schleswig-Holstein state government for a site visit to its battery cell factory in Skelleftea, Sweden. "Establishing a European battery cell industry is one of the most significant industrial policy challenges at present, and Northvolt takes the need for information by state policy seriously," a spokesperson said.
Northvolt renews its invitation to provide the delegation with a firsthand experience of its operations. In July 2024, members of the Economic Committee were invited to visit the first gigafactory.
According to information from the German Press Agency (DPA), no member of the state government has yet visited Northvolt in Sweden.
Northvolt plans to build battery cells for up to one million electric cars annually in Heide, Germany, but the company has faced financial difficulties for some time. In November, Northvolt filed for Chapter 11 bankruptcy protection in the United States. The crisis could prove costly for the federal government and the state of Schleswig-Holstein. Northvolt received approximately €600 million from the German state-owned development bank KfW, for which the federal government and the state are guarantors.
As part of its restructuring, Northvolt announced plans to lay off an estimated 1,600 employees in its Swedish homeland. However, the company’s battery factory under construction in Heide, Schleswig-Holstein, is reportedly unaffected by the layoffs.
State Government’s Reservations and Ongoing Concerns
Despite Northvolt’s assurances, the Schleswig-Holstein government remains cautious about the project. In August 2023, Minister-President Daniel Günther expressed skepticism about the company’s financial situation and the lack of clarity regarding its restructuring.
The state government has emphasized the need for transparency and a thorough assessment of Northvolt’s financial health and turnaround prospects. Officials have also stressed the importance of minimizing potential risks to taxpayers.
Calls for Swift Resolution and Assurance of Public Funds
The state government and opposition parties have called on Northvolt to provide timely information on its financial restructuring and to address concerns about the security of public funds.
"The state government must do everything in its power to protect taxpayers’ money," said Wolfgang Kubicki, leader of the Free Democratic Party (FDP) in the state parliament.
The state government has also called on the federal government to support its efforts to ensure the viability of the Northvolt project and to safeguard taxpayer interests.
Northvolt’s Confidence amidst Financial Challenges
Despite its financial struggles, Northvolt remains optimistic about the future of the Heide factory. The company has expressed confidence in its ability to overcome current challenges and emphasizes the long-term potential of its technology.
Northvolt’s spokesperson stated, "We are working intensively on our restructuring and are confident that we will emerge from this process as a stronger company."
