Ad
Ad
Ad
Ad
Ad
© Northvolt
Electronics Production |

EU Commission approves German State aid for Northvolt

The European Commission has approved a EUR 902 million German measure to support Northvolt in the construction its battery production plant in the city of Heide, Germany.

Germany notified to the Commission, under the Temporary Crisis and Transition Framework, a EUR 902 million measure to support the Swedish battery manufacturer in the construction of a production plant for advanced and high-efficiency electric vehicle batteries in the city of Heide. 

Once completed the plant is set to have an annual capacity of 60 GWh, which could mean up to 800,000 to 1 million electric vehicles per year, depending on the size of the battery. The current plan is that the plant will start producing in 2026 and reach full production capacity in 2029.

Under the measure, the aid will take the form of a EUR 700 million direct grant and a EUR 202 million guarantee. Without the aid, Northvolt would establish the plant in the United States, where support was offered in particular under the Inflation Reduction Act.

"This €902 million German measure is the first individual aid being approved to prevent an investment from being diverted away from Europe, under the new possibility offered by the Temporary Crisis and Transition Framework since March 2023. It enables Germany to support the construction of Northvolt’s production plant of batteries for electric vehicles. This is an important step for the electrification of transport in Europe, while preserving the level playing field in the Single Market," says European Commissioner Margrethe Vestager, Executive Vice-President in charge of competition policy.


Ad
Load more news
June 13 2024 1:49 pm V22.4.55-2