FRANKFURT, Germany, May 12 – Swedish battery specialist Northvolt confirmed Friday it would build a major factory in northern Germany after months of uncertainty, as Europe seeks to boost capacity to produce electric cars.
“Northvolt has decided to take the next steps towards our expansion in Heide,” in the state of Schleswig-Holstein, Northvolt’s CEO Peter Carlsson said in a joint statement with the German government.
The so-called gigafactory will have an annual production volume of 60 gigawatt hours, and will be able to supply around one million electric vehicles with batteries.
It will create 3,000 jobs in Heide. It is hoped construction work can start in 2023, with deliveries of batteries from the plant expected in 2026, the statement said.
“Germany can look forward to one of the most significant… projects of the energy and transport transition, which will create thousands of green tech jobs,” said German Economy Minister Robert Habeck.
The green light for the plan is a boost to German’s green ambitions, and comes after Carlsson raised doubts about the project in October.
He told German media the project could be postponed due to soaring energy costs in Germany in the wake of Russia’s invasion of Ukraine.
He also noted that the United States was providing tempting subsidies under its massive green investment plan.
Germany’s economy ministry said Friday that Berlin as well as Schleswig-Holstein state stood ready to provide support to the “multi-billion-euro” project.
The planned support was still subject of state aid approval by the European Commission, the ministry said.
