Green Party Chairman expresses hopes for a battery factory's establishment in Hied location - Green Group Leader Aims for Proximity of Battery Manufacturing Facility in Heide
In the heart of Schleswig-Holstein, Germany, the proposed Northvolt Drei battery factory in Heide remains in a state of preparation, following Northvolt's insolvency declaration in March 2025. The factory, initially greenlit in early 2024, aimed to produce about 60 GWh of battery cells per year using nearly 100% renewable energy.
The European Commission approved direct funding of around 700 million euros for the project, but the money has yet to be paid out. Locally, Northvolt received approximately 600 million euros from KfW for the planned factory construction, with half guaranteed by the federal government and half by the state.
However, Northvolt's rapid descent into insolvency, marked by ever-increasing debts, thousands of employee layoffs in Sweden, halted expansion plans, and a temporary bankruptcy filing in the USA, have impacted the Heide factory construction and development. The factory site in Heide is now part of Northvolt's bankruptcy estate, and several interested buyers have made indicative offers to purchase Northvolt's assets as a whole, potentially including the Heide location.
The insolvency administrator has stressed the critical nature of time, as employee availability decreases, which complicates the potential takeover and continuation of projects, including Heide. No concrete buyer has been publicly confirmed, and negotiations are ongoing, with the hope that a foreign investor acquiring the entire bankruptcy estate could resume or advance the Heide factory's plans in the future.
Green Party leader Lasse Petersdotter, who has expressed a keen interest in the project, hopes for a major industrial settlement in Heide, specifically a battery cell factory. He emphasises the strategic importance of producing batteries in Germany and is open to other interested parties from other sectors, including the defense industry.
Petersdotter, however, feels insufficiently informed as a parliamentarian regarding the convertible bond issue and has filed a lawsuit before the state constitutional court due to a possible violation of the government's information obligations towards the state parliament.
The property in Heide is economically strategically attractive, with archaeological and environmental investigations already completed. The situation remains uncertain, and it remains to be seen how expensive the insolvency will ultimately be for Germany and Schleswig-Holstein. The factory's intended production start is still scheduled for the second half of 2027, but its future hangs in the balance.
- The proposed Northvolt Drei battery factory in Heide, initially greenlit for producing about 60 GWh of renewable energy battery cells per year, has yet to commence construction due to Northvolt's insolvency.
- Despite Northvolt's financial struggles, causing halts in expansion plans and temporary bankruptcy filing, the factory site in Heide attracts potential buyers, with foreign investors primarily interest in acquiring the entire bankruptcy estate.
3.There is an ongoing negotiation process for resuming or advancing the Heide factory's plans, with Green Party leader Lasse Petersdotter expressing interest in the project, specifically focusing on a battery cell factory that could potentially be established in collaboration with the defense industry.
- Meanwhile, Petersdotter has expressed dissatisfaction with the lack of information regarding the convertible bond issue, resulting in a lawsuit filed before the state constitutional court to address possible violations of the government's information obligations.
