Northvolt to build gigafactory for batteries in metropolitan region

German government and Schleswig-Holstein to fund gigafactory in Heide pending EU approval
16 May 2023
Fabrik Northvolt Labs in Schweden

Sweden's Northvolt has announced plans to build a gigafactory for battery cells in Heide backed by the state of Schleswig-Holstein and pending the approval of EU funding which the German government and the EU Commission are negotiating at present, a press release said Friday (May 12, 2023). The new factory would create around 3,000 jobs across the Hamburg Metropolitan Region.

Northvolt project crucial for mobility transition

Peter Carlsson, CEO of Northvolt, said: “We’re grateful for all the efforts being made by the Federal Government, the state government of Schleswig-Holstein, the EU-Commission and in the district of Dithmarschen. Backed by this commitment of the federal government, Northvolt has decided to take the next steps towards our expansion in Heide.” Robert Habeck, Germany's Minister for Economics, said: “In reference to the next steps regarding Northvolt, Germany can look forward to one of the most significant lighthouse projects of the energy and transport transition, which will create thousands of green tech jobs." If approved, this would unlock billions in investment from Northvolt. Thousands of new jobs could be created in Heide and in the surrounding industry and service sector. Daniel Günther, Prime Minister of Schleswig-Holstein, remarked: "Northvolt's decision is a strong commitment to Heide. The joint efforts of the region, the state and the German government to attract the company over the past two years have paid off." 

Factory to supply one million electric vehicles from 2026

In response to a corresponding law in the United States, the EU has presented the so-called "Temporary Crisis and Transition Framework" (TCTF) for international company settlements and will approve the funding based thereon. Two participating municipalities in Dithmarschen decided in early May to enter the next phase of the approval procedure. The planned factory would have an annual production volume of 60 gigawatt hours and supply around one million electric vehicles with battery cells. Work on preparing the site and obtaining final construction approval is now underway. Construction is due to begin in 2023 with deliveries of the first battery cells from 2026.