Swedish Northvolt building EV battery plant in northern Germany

Swedish company Northvolt today began construction of an electric vehicle battery plant in northern Germany. The factory will be located near the town of Heide in the state of Schleswig-Holstein, and the company plans to produce batteries there for one million vehicles a year. German Chancellor Olaf Scholz attended the event. Northvolt CEO Peter Carlsson said the shift to electric power was an inevitable trend. In January, the European Commission approved state aid for the project, Reuters reported.

„Investments such as the one made by Northvolt are of strategic importance to our country and to Europe,“ Scholz said.

„Today we see some clouds in the sky; overall, we are seeing a slight downturn in the electric vehicle trend,“ Carlsson acknowledged. „But the shift from combustion engines to electric motors is inevitable,“ he added.

In a statement, Northvolt pointed to the ample wind power available on the west coast of Schleswig-Holstein. The company said this was a key factor in choosing the site.

Northvolt plans to start production at the new factory in 2026. The investment, worth a total of 4.5 billion euros (113.8 billion Kč), is expected to create around 3,000 jobs. State aid includes direct financial support of 700 million euros and guarantees worth 202 million euros.

Northvolt announced its decision to build the factory near Heide last May, after Germany pledged state aid. The company signed a preliminary agreement with the Schleswig-Holstein government to build the battery plant in March the year before last. It later said, however, that more generous subsidies and lower energy costs could lead it to prioritize expansion in the United States over Europe.