Schleswig-Holstein Parliamentarians Scrutinize Northvolt Deal Amidst Financial Concerns
The parliamentary representatives of Schleswig-Holstein have been authorized a period of at least four weeks to scrutinize official records related to the dealings between the provincial government and the Swedish battery manufacturer, Northvolt. However, unique precautions have been implemented, as revealed by Julia Carstens, the State’s Economic Secretary from the Christian Democratic Union party (CDU), during the Finance and Economic Committee meeting held on the morning of the announced investigation.
The aim of the inquiry is to strike a balance between enabling effective oversight while safeguarding Northvolt’s confidential business data. Carstens emphasized the government’s obligation to shield such information, stating, "The provincial government is duty-bound to protect these [data]." To ensure this protection, portions of the records will be made available in printed format, while others will be accessible digitally.
Furthermore, Carstens requested a minimum of one week’s notice before discussing specific documents in an open session. This would allow the government to consult with Northvolt if necessary.
The Social Democratic Party faction initiated the request for document access, primarily seeking records pertaining to the convertible bond issued by the KfW development bank, for which the northernmost German state has provided a 300 million euro guarantee. Additionally, the parliament is interested in the state’s involvement in a separate 137 million euro subsidy for Northvolt.
Carstens indicated the vast scope of documents subject to the investigation, with the Economic Ministry alone estimating a five-digit number of items. This collection has been systematically organized in recent weeks.
Northvolt’s plan to establish a production facility in Heide for battery cells capable of powering up to one million electric vehicles annually has been marred by persistent financial difficulties. In November, the company filed for Chapter 11 bankruptcy protection in the United States. This crisis poses potential financial consequences for both the federal government and Schleswig-Holstein. Northvolt has received approximately 600 million euros in funding from the KfW, guaranteed equally by the federal and state governments.
In the meantime, the parliamentary inquiry will proceed with due diligence, aiming to shed light on the province’s dealings with Northvolt and to ensure responsible stewardship of public funds.
