Northvolt builds battery cell factory in Schleswig-Holstein

The Swedish company Northvolt has announced plans to build a large battery cell factory with a capacity of 60 gigawatt hours in Heide, Schleswig-Holstein. The investment volume is expected to amount to several billion euros in total, creating more than 3,000 new direct jobs. Federal Minister for Economic Affairs and Climate Action Robert Habeck welcomed the decision. The construction of a battery cell factory in Heide is a strong signal for the Schleswig-Holstein location. He expects new future-proof jobs to be created.

"Every investment in climate-friendly technologies strengthens the sovereignty of Germany and Europe. Northvolt's production will specifically contribute to strengthening the supply chains for electromobility in Germany and Europe. That is why the federal government will also substantially support the project," Habeck further announced.

The decision also shows that renewable energies on site have now become a decisive location factor. Whoever expands renewables a lot has very good chances, believes Habeck. The Federal Ministry for Economic Affairs and Climate Action supports the project as part of the 2nd IPCEI on battery cell production coordinated by Germany (IPCEI: Important Project of Common European Interest). Some formal steps are still pending for the coming weeks. Then the company is expected to receive its funding notification. The Federal Ministry for Economic Affairs and Climate Action will also announce the amount at that time.

Northern Line: Holstein-Hamburg as an Interface to Scandinavia

With a potential annual production capacity of 60 GWh, "Northvolt Three" will supply the European market with sustainably produced lithium-ion batteries sufficient for about one million electric vehicles. The new gigafactory increases the battery production capacities under development to over 170 GWh and is intended to be another building block for producing batteries with clean energy and a circular economy. Production is expected to start in 2025, and the provider promises the creation of up to 3,000 jobs. The choice of Heide, Schleswig-Holstein, is seen as key: The region hosts Germany's cleanest energy grid, characterized by a surplus of power from onshore and offshore wind farms and clean energy provided through grid interconnections with Denmark and Norway, the provider justifies the location choice.

"It matters how we manufacture a battery cell. If coal is used in the manufacturing process, a considerable amount of CO2 gets into the battery. Our philosophy is that new energy-intensive industries such as battery manufacturing should be located in close geographic proximity to where the clean energy is generated," explains Peter Carlsson.

In addition, the broader industrial landscape around Hamburg is cited for Northvolt's growing presence in Europe. The region is not only centrally located in the emerging European battery supply chain that connects Scandinavia and Continental Europe, but also offers the necessary space to build a battery plant of sufficient size. This is necessary to leverage economies of scale in production, which is key to reducing battery costs, the provider further explains. Additionally, the aim is to tap into German industrial and automotive expertise and the local manufacturing know-how of the Schleswig-Holstein and Heide region. Sustainability plays a central role in planning and decision-making, Carlsson further notes. Therefore, the factory will source a large part of its raw material needs from recycled battery metals. The company points to its commitment to sourcing 50 percent of its raw material needs from recycling by 2030. In addition to battery production, the company also plans to build a battery recycling plant on site to ensure efficient reuse of by-products from the production process. The aim is to recycle used batteries from electric vehicles that are taken back in European markets.