Future of the Northvolt factory in Heide: bankruptcy is causing 3,000 jobs!

Future of the Northvolt factory in Heide: bankruptcy is causing 3,000 jobs!

The bankruptcy of the Swedish battery manufacturer Northvolt leads to massive uncertainties about the future of the project to establish a gigafactory in Heide, Schleswig-Holstein. This factory was originally supposed to create around 3,000 jobs and was supported by subsidies. Local residents express concerns about the progress of the construction work, while the mayor of Lohe-Rickelshof, Kai Tange, notes that so far little of the big plans has been implemented. Despite the bankruptcy of the parent company, Northvolt Germany emphasizes that the company wants to continue working independently.

In the region, 100 hectares of land have already been prepared for the project, and the groundbreaking ceremony for the factory took place in March. However, the infrastructure structure is slow. In this context, rumors are circulating about possible subsequent use of the area, including Bosch. According to Jürgen Burmeister, the head of the Heide development agency, the settlement of companies depends heavily on the availability of green electricity from wind power. Around 600 million euros in tax money has already been invested in the Northvolt project.

uncertain future

The bankruptcy of Northvolt, which affects both Swedish and European battery cell production, has a direct impact on the planned factory in Schleswig-Holstein. The Interim Supervisory Board Chairman Tom Johnstone expressed that he cannot provide any further information at the moment. Nevertheless, the company in Germany is to be continued because the German subsidiary has an independent legal form. At the same time, it becomes known that, given the bankruptcy, the decisions about the future of Northvolt must be made by a court.

The automotive industry in Europe sees itself a setback. In northern Germany, employees in northern Germany, while around 5,000 employees in Sweden also have to fear for their jobs. In the past few months, Northvolt had already struggled with financial difficulties, including rising capital costs and problems in the supply chains. In September 2024, this led to the announcement that 1,600 employees in Sweden were released and expansion plans were put on hold. According to Christofer Haux, the Germany boss of Northvolt, the German location, on the other hand, continues to priority.

The EU Commission approved funding and guarantees of over 902 million euros for the work in Schleswig-Holstein, while the federal government and the state of Schleswig-Holstein had planned to support around 700 million euros. However, the bankruptcy could also result in financial consequences for the federal government and the state of Schleswig-Holstein, since around 600 million euros have already flowed into the project from the KfW.