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Northvolt to build battery plant in Germany with $986 million from EU

January 11, 2024

Northvolt, a Swedish battery producer, has secured EU approval for a 902-million-euro ($986.43 million) German state aid to establish an electric vehicle battery production plant in northern Germany. The European Commission stated that the plant would expedite the green transition of the 27-country bloc and decrease fuel dependencies. The German aid, necessary to prevent Northvolt from building the plant in the United States with support from the U.S. Inflation Reduction Act, comprises a 700-million-euro direct grant and a 202-million-euro guarantee.

The plant will be situated in the city of Heide and is projected to have an annual capacity of 60 GWh. This capacity equates to the production of batteries for 800,000 to 1 million electric vehicles per year, depending on the size of the battery. The production is set to commence in 2026 and is expected to reach full capacity by 2029.

($1 = 0.9144 euros)