Northvolt bankruptcy: What's next with the factory in Heide?

Northvolt bankruptcy: What's next with the factory in Heide?

In November 2024, Northvolt, the Swedish parent company of the planned battery factory in Heide, Schleswig-Holstein, reported bankruptcy. This decision affects all Swedish units, but not the German and American subsidiaries. The future of the planned work in Germany remains uncertain, even if the company is to be continued there for the time being, such as reported.

The construction work on the Gigafactory in Heide is slower than hoped. Originally, the factory was to create 3,000 jobs and was opened with a symbolic Boßel throw, in which Federal Chancellor Olaf Scholz, Federal Minister of Economics Robert Habeck and Prime Minister Daniel Günther took part. But the euphoria has evaporated and many of the surrounding projects have been stopped. Mayor Oliver Schmidt-Gutzat expressed that there is currently no pressure for the construction of a temporary residential complex for construction workers. Plans for container villages are resting, and negotiations between Northvolt and the city of Heide have been discontinued. The head of office Björn Jörgensen described the Situation as a "roller coaster ride" and is waiting for decisions by the insolvency administrator.

uncertain future for the battery factory

The uncertainty about the development of the work is reinforced by the difficulties with which Northvolt has faced in recent months, including rising capital costs, geopolitical instability and problems in the supply chains. In September 2024, Northvolt announced that it announced about 1,600 employees in Sweden and put several expansion plans on hold. In a report by ndr.de Norderwöhrden and Lohe-Rickelshof are continued, but slower than planned. The progress is restricted by the lack of the floor slabs for the planned halls, which hinders the use of the site.

It is currently unclear whether the battery factory is ultimately built as planned or whether alternative uses have to be considered. The development itself is directed by a court -appointed insolvency administrator, with Mikael Kubu being proposed as a trustee. Schleswig-Holstein's Minister of Economic Affairs expressed the need to be patient and to wait for the decisions in bankruptcy proceedings.

The EU Commission used to approved funding and guarantees of 902 million euros for the work, while the federal government and the state of Schleswig-Holstein planned around 700 million euros. Northvolt has already received around 600 million euros from the KfW, with guarantees of the federal and state governments.