Alleged Conflict of Interest in Northvolt Deal Deemed Unfounded by Local Authorities
Background:
In January 2024, the municipal council of Norderwöhrden, Dithmarschen, approved plans by Northvolt to build a battery factory near Heide. Controversy arose when it was revealed that Northvolt had paid €3,000 to the local hunting association in exchange for 60 hectares of hunting ground on the proposed construction site. Concerns were raised about potential conflicts of interest, as two municipal councilors were members of the hunting association and the hunting leaseholder.
Investigation and Findings:
The zuständige Kommunalaufsicht (local supervisory authority) investigated the matter and concluded that there was no evidence of conflict of interest among councilors. Dithmarschen’s Landrat (district administrator), Thorben Schütt, stated that "Based on the available information, there is no justification for assuming a conflict of interest on the part of the two councilors during the decision-making process regarding the building plan and implementation contract on January 22, 2024."
The state’s highest Kommunalaufsicht, which operates under the Ministry of the Interior, fully supports this conclusion.
Details of the Case:
- The hunting association in Norderwöhrden has 63 members in a village with only 250 residents.
- Membership in the association is automatic for all owners of hunting land in the municipality.
- Northvolt’s offer of compensation was made in March 2024, after the council’s decision to approve the factory plans.
- A similar hunting association in nearby Lohe-Rickelshof was offered compensation but declined.
Northvolt’s Financial Struggles:
Northvolt’s plans to build a battery factory in Heide have been met with financial challenges. In November 2022, the company filed for Chapter 11 bankruptcy protection in the United States. This crisis has potential financial implications for both the German federal government and the state of Schleswig-Holstein, which have provided guarantees for €600 million in loans to Northvolt from the state-owned development bank KfW.
Conclusion:
The zuständige Kommunalaufsicht and the state’s highest Kommunalaufsicht have concluded that there is no evidence of conflict of interest in the decision-making process related to the Northvolt factory plans in Norderwöhrden. However, the ongoing financial struggles of Northvolt raise concerns about the potential costs to German taxpayers.
