Northvolt bankruptcy: Future of the battery factory in Schleswig-Holstein unclear!

Northvolt bankruptcy: Future of the battery factory in Schleswig-Holstein unclear!

In a dramatic development for Swedish battery manufacturer Northvolt, it filed for bankruptcy in March 2025. This now raises questions about the future construction of the planned battery cell factory in Heide, Schleswig-Holstein. However, Prime Minister Daniel Günther is optimistic and points to several potential parties interested in taking over the company. “It's smart to keep the ball low here and not talk too much about the potential buyers,” he recently explained.

The site in Heide is considered extremely attractive for battery cell production as it offers access to renewable energy and green electricity. The federal government has already provided an impressive sum of over 600 million euros in the form of a convertible bond to support the construction. Economy Minister emphasizes that patience is required in this matter, while there is still uncertainty about the progress.

Reports provide insights into the economic future

A crucial report from PricewaterhouseCoopers (PwC) examined Northvolt's economic situation and prospects of success. This report showed that the probability of the convertible bond being fully repaid in 2028 is 86 percent. At the same time, the risk of non-repayment to the federal and state governments is estimated to be less than 1 percent.
maschinenmarkt reports that there are concerns about data availability, however, as Northvolt has not provided all the required information.

Despite PwC's positive assessments of the company - such as its robust customer base, which includes well-known brands such as Audi, BMW and Porsche - Northvolt's leaders are under pressure. A “take or pay” contract with BMW was canceled in the summer of 2024, which further aggravated the financial situation and could lead to the current bankruptcy. Capital explains that production at the main Swedish factory is scheduled to stop at the end of June, which further complicates the situation.

Politics and public criticism

The reactions of political actors are mixed. While the Greens point to the positive prospects, the FDP criticizes the data base as thin. Former Federal Minister of Economics Robert Habeck, who played a key role in promoting support for Northvolt, finds himself criticized in view of the ongoing problems. The Federal Audit Office also sharply criticizes the allocation of tax money, which is perceived as frivolous. There are now up to three other interested parties in play, including a non-binding offer from abroad, as insolvency administrator Mikael Kubu reports, which at least offers a glimmer of hope for a purchase negotiation.

Overall, the question remains whether battery cells can be produced in Schleswig-Holstein in the future and how the situation surrounding Northvolt will develop. The Minister of Economic Affairs and the Prime Minister view the upcoming opportunities positively, while the opposition expresses warnings for care and transparency. The path to a successful future for the battery factory in Heide remains rocky and full of uncertainties.