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Energy Storage & Fuel Cell Industry

Construction Starts on Major German Battery Factory

Swedish lithium-ion battery producer Northvolt has broken ground on its new EUR 4.5 billion facility in the northern German city of Heide.

There was no shortage of political clout on hand to mark the beginning of work on the prestige project. German Chancellor Olaf Scholz underscored the significance of the Northvolt 3 facility for Germany as a business location.

“Germany was, is and will remain a strong industrial country, and the production of automobiles will remain the backbone of our industry beyond the combustion engine,” Scholz said. “For that, we need battery cells made in Germany, made in Europe.”

German Minister for Economic Affairs and Climate Action Robert Habeck stressed the importance of reliable sources of clean energy as a factor in Northvolt’s decision to expand to the windy north of Germany.

“Northvolt looked in all of Europe, and Heide won out,” Habeck said. “The main reason was the prevalence of green electricity. Wind power will become a magnet for expanding businesses.”

National and regional governments are offering Northvolt some EUR 900 million in assistance for the factory. Northvolt hopes to make batteries for one million cars a year at the plant. Production is scheduled to commence in 2026, with the facility to run at full capacity by 2029.

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