Northvolt Factory Heide: Scholz and Habeck Celebrate Construction Start - and Emphasize Importance for Location
Chancellor Olaf Scholz (SPD) emphasized the strategic importance of investments like the Northvolt battery factory in Heide for Germany and Europe. "Germany was, is, and will remain a strong industrial nation," Scholz said on Monday at a ceremony marking the construction of the Gigafactory in Hedwigenkoog near Heide. "And the production of good cars will remain the backbone of our industry even beyond the combustion engine." For this, battery cells of German manufacture are needed. Therefore, the construction of the Gigafactory in Heide is good news for the entire country. 3,000 jobs will be created directly at Northvolt, and another 10,000 are expected in the vicinity of the factory. "This opens up huge opportunities for small and medium-sized enterprises."
Federal Minister of Economics Robert Habeck (Greens) expects that the construction will bring many changes to the west coast. This is the purpose of the whole exercise for Germany, but also for the region. "It will look different. It is a major intervention," Habeck said. Conversely, this means that employment and added value will be created and the region will become more attractive to tourists.
Schleswig-Holstein's Minister-President Daniel Günther (CDU) spoke of a great day of joy. The construction of the factory would demonstrate that investments in renewable energies paid off. "Here, a climate-neutral industrial region becomes visible." The Northvolt example shows that these are not mere pipe dreams. The state government supports the region, but also needs help from the federal government in the coming years to expand the transportation infrastructure to get the batteries out of the factory. "We have a genuine growth region here that will radiate across all of Germany."
In the morning, Scholz, Habeck, and Günther, together with Northvolt CEO Peter Carlsson and Northvolt Germany CEO Christofer Haux, were to press the start button for the groundbreaking works for the first factory building on the site in Lohe-Rickelshof and Norderwöhrden. The federal and state governments are funding the battery factory with around 700 million euros. Additionally, possible guarantees of a further 202 million euros, which still need to be approved, may be added. Production is set to begin in 2026.
The investment volume for the gigafactory on an area of 110 hectares in the municipalities of Lohe-Rickelshof and Norderwöhrden (Dithmarschen district) amounts to 4.5 billion euros, according to company information. Production is scheduled to start in 2026. From 2029, battery cells for about one million electric cars per year are to be produced there. The plan includes 3,000 direct jobs. A facility for recycling old batteries from decommissioned electric cars is also being considered.
At the beginning of the year, the EU Commission had cleared the way for funding and guarantees for the project from the federal and state governments amounting to 902 million euros. They are supporting the battery factory with around 700 million euros. In addition, there are guarantees for another 202 million euros. Of the funding, about 564 million euros come from the federal government and up to 137 million euros from the state of Schleswig-Holstein.
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