The German Government’s budget committee approved an additional EUR600 million (USD636 million) for Northvolt Drei. This follows on from previous funding in May 2022, after the initial announcement of the gigafactory in March 2022. The EUR600 million (USD636 million) will be paid out by the KfW bank, with the federal government assuming liability. The funding will be paid out in a repayable convertible bond.
A Germany Gigafactory
Northvolt announced Northvolt Drei in March 2022 signing a Memorandum of Understanding with the state government of Schleswig-Holstein. It included a EUR4.5 billion (USD4.77 billion) investment, set to create 3,000 jobs. Located in Heide, Schleswig-Holstein, northern Germany, production is expected to begin in 2025. The company aims for it to have an annual production capacity of 60 GWh. Enough batteries to cater to one million EVs each year. In addition to this, Northvolt intends to have a battery recycling plant on site.
Funding announced in May 2022 culminated to EUR155 million (USD164 million). Out of that amount, 70%, approximately EUR108 million (USD114 million), was funded by the federal budget. The remaining 30%, approximately EUR46 million (USD49 million), provided by the state of Schleswig-Holstein. This funding came through the Important Projects of Common European Interest (IPCEI) legislation. The additional convertible bond backed by the government is proposed to go beyond the initial EUR155 million (USD164 million) of funding. The financial support aligns with the EU’s Temporary Crisis and Transition Framework (TCTF), meaning it is pending approval from the EU Commission.
In October last year, Northvolt announced it was looking to relocate elsewhere. This was due to…
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