Sweden's Northvolt to build gigafactory for battery cells in Heide

24 January 2024

Production of battery cells for 1 million e-vehicles annually to start in 2026 thanks to EU funding - creates 3,000 new jobs

Sweden's Northvolt is set to build a gigafactory for battery cells following the approval of both Lohe-Rickelshof and Norderwöhrden on Monday (January 22, 2024). The company now plans to invest EUR 4.5 billion in the factory, which will have an annual production volume of 60 gigawatt hours and supply around one million electric vehicles with battery cells every year from 2026. It will create 3,000 new jobs and should have a positive impact on regional industry and service providers.

Northvolt to invest EUR 4.5 billion in metropolitan region

The region is facing huge challenges in terms of infrastructure and expansion, said Kay Uwe Evers, Mayor of Norderwöhrden, adding: "We need urgent support from the federal and state governments." However, the project also holds great opportunities. Northvolt is investing EUR 4.5 billion in "one of the most important flagship projects of the energy and transport transition", according to Robert Habeck, Germany's Minister for Economics. A facility for recycling batteries from discarded e-cars is also to be built.

EUR 902 million in funds released

"Germany's first wind farm was built in Dithmarschen, and now the most sustainable battery cells will soon be produced here," said Christofer Haux, Northvolt's Managing Director in Germany. Earlier in January, the EU Commission approved EUR 902 million in funds for the factory. Last December, the German Ministry of Economics and Energy presented Northvolt with a grant of EUR 564 million and the state of Schleswig-Holstein provided another EUR 136 million pending the approval of the EU Commission, the NDR broadcaster reported.

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