Economic Committee Advises Again on Northvolt - Northvolt’s collapse sparks political fury over €264M in unused battery factory funds
A bitter dispute has broken out between Schleswig-Holstein and the federal government over the collapse of Northvolt’s planned battery factory near Heide. The project, once set to create 3,000 jobs, fell apart after the company went bankrupt. Now, politicians are demanding answers about the handling of public funds and future plans for the site.
Northvolt had originally secured around €600 million from Germany’s state-owned KfW bank for the Heide factory through a convertible bond. Of that sum, roughly €264 million remains unused. The company’s insolvency has left uncertainty over how—or if—these funds will be reallocated.
The state parliament has unanimously criticised Berlin’s tight-lipped approach to sharing information. Lawmakers even threatened legal action if transparency isn’t improved. Former Economy Minister Bernd Buchholz (FDP) pushed for federal officials to attend a committee meeting, hoping to clarify the situation. Meanwhile, the SPD has demanded a full report on the takeover timeline for Northvolt’s German subsidiary. Their economic policy spokesperson, Kianusch Stender, wants answers presented at the Economic Affairs Committee meeting on January 14. The governing coalition—CDU and Greens—recently approved releasing more funds from the convertible bond to rescue the subsidiary, but opposition parties blocked the move. Amid the chaos, U.S. firm Lyten is in talks with authorities to build a smaller battery plant at the same location. The timeline for Lyten’s potential takeover of Northvolt Drei is now under close examination.
The future of the Heide site remains uncertain, with political tensions rising over unspent funds and Berlin’s lack of openness. If Lyten’s negotiations succeed, a scaled-down battery facility could still emerge. But for now, the focus stays on accountability and how the remaining €264 million will be handled.
