© Northvolt Electronics Production | August 17, 2020
Northvolt secures German state guarantee worth USD 525M
The Federal Ministry of Economics says it will support the financing of Northvolt's battery cell factory in Sweden via a state guarantee.
The German federal government will support the financing of Northvolt’s battery cell factory in Sweden with a state guarantee of USD 525 million. With Volkswagen and the BMW Group, companies from within the German automotive industry are tightly involved in the project. The Northvolt project is another important component in building a broad and stable value chain for electromobility in Germany and Europe, a press release from the German Federal Ministry of Economics reads. Through this cooperation, German companies can secure a long-term procurement of lithium-ion battery cells that will be needed for the electric car fleets of the future. The Northvolt production facility in Sweden also serves as a reference and pilot project for the “Northvolt Zwei” battery cell production facility, which is planned to go into operation in Salzgitter in 2024 as a joint venture between Northvolt and Volkswagen. The annual production capacity of the plant – once fully expanded – should be 40 GWh, which would make Northvolt’s Salzgitter plant one of the largest battery cell production facilities in Europe. In addition to Germany, France, Japan, South Korea and the European Investment Bank are also participating in the overall financing of the project.