May 19, 2023: Federal and state governments in Germany said on May 12 they will give financial backing for Swedish battery maker Northvolt to build a gigafactory in the country.
Financial details, which will require European Union approval under state-aid rules, were not disclosed.
But Northvolt said the backing would “unlock a multi-billion euro private investment”, creating 3,000 direct jobs at the 60GWh a year EV battery cells plant in Heide — which could start production in 2026.
Federal and state funding will in part be made under the EU’s temporary crisis and transition framework, to support economies following the impact of Russia’s war against Ukraine.
If the EU gives the go-ahead, this would be the first time the framework funding has been deployed in Germany.
Northvolt said in March last year that it had selected Heide, in northern Germany, as the site for its third lithium ion gigafactory — dubbed ‘Northvolt Drei’.
The new plant is also set to have an onsite battery recycling facility.