Schneider withdraws promotion for Northvolt within personal domain - Budget will no longer include Northvolt subsidy, as per Schneider's plan
As of September 2025, there are no confirmed reports of US-based company Lyten taking over the bank guarantee for Northvolt's planned battery factory in Heide, Germany. The project, known as Northvolt Drei, is still a joint venture between Northvolt and German wind energy provider Schleswig-Holstein Netz (SH Netz).
Current Information
Northvolt has positioned itself as the main investor and operator of the project, establishing a subsidiary (Northvolt Drei GmbH) for the purpose. SH Netz is on board as a partner, contributing to the infrastructure of renewable energy. Land purchases and preparatory measures have already been made. The financing for the project will be secured through a mix of equity, public funding (including from the EU, federal government, and state), and bank loans. A bank guarantee is common for such large-scale projects to mitigate financial risks.
At this point, Lyten has not been publicly named as a financing partner or guarantor for the project. Lyten is working on its own battery technologies but is not, as of now, part of the Northvolt-Heide project.
Possible Confusions
There is no evidence to suggest that Lyten is involved in the Northvolt-Heide project or has taken over a bank guarantee. It is possible that a confusion has arisen with other projects or technologies. However, such collaborations are rare in the battery industry, especially for this specific project.
Summary
The Northvolt Drei project in Heide remains under the leadership of Northvolt and SH Netz. The bank guarantee, typical for large-scale projects, is likely to be secured by capable banks or through state aid instruments (such as Hermes guarantees). As of now, Lyten is not involved.
Further Information
- Official communications from the involved companies (Northvolt, SH Netz) provide the most accurate updates on the project's status.
- Media reports on acquisitions or changes in the consortium should always be verified against their sources.
- International partnerships in the battery industry are rapidly evolving – regular research is recommended.
Should new, reliable information emerge, feel free to request an updated research!
In a recent development, Schleswig-Holstein's Minister of Finance, Silke Schneider, has announced the removal of approximately 137 million euros of planned funding for the battery cell factory in Heide from the current budget. This funding was based on the Temporary Crisis and Transition Framework (TCTF) of the EU. An additional 20 million euros were provided for interest and procedural costs.
The funding, amounting to around 600 million euros, was intended for the establishment of a battery cell factory by the Swedish battery manufacturer Northvolt. The funding for the battery factory in Schleswig-Holstein was provided to Northvolt via a convertible bond from the state promotional bank KfW. However, Northvolt's bankruptcy has led to the withdrawal of the funding.
The funding authorization for the battery factory, due to the ongoing takeover negotiations, is to be removed from the 2025 and 2026 budgets. The US company Lyten is taking over all remaining Northvolt sites, including Northvolt Three in Heide. The EU Commission has not yet paid out the planned funding for the battery cell factory. The funding withdrawal was announced by Schneider in the Economic and Finance Committee of the Landtag in Kiel.
The 2026 budget for Schleswig-Holstein, which includes the funding for the battery factory, will be discussed in first reading next week. Some of the funding for the battery factory is still said to be available. The funding was meant to anchor the production of climate-neutral, strategically important technologies in Europe at an early stage and avoid one-sided dependencies. The insolvency of Northvolt has created a threat of a multi-million euro loss for the taxpayer. Schneider stated that they will correct this with the supplementary list.
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