BERLIN/HEIDE (dpa-AFX) - The Swedish company Northvolt may build a large battery cell factory for electric cars in Schleswig-Holstein near Heide as planned. The EU Commission has now approved the planned funding for the billion-euro project, as the Brussels authority announced on Monday. "This measure of 902 million euros is the first individual aid approved to prevent an investment from being relocated to a country outside Europe," said Margrethe Vestager, the EU Commissioner responsible for competition. Federal Economics Minister Robert Habeck (Greens) emphasized: "I am very, very happy that this is happening today."

Northvolt plans to manufacture battery cells for electric cars in a factory in the Dithmarschen district from 2026. The 4.5 billion euro investment is expected to create 3,000 jobs. The company has already invested around 100 million euros of its own funds in the construction project in Heide, according to sources close to the project.

The federal and state governments are supporting the project with around 700 million euros. In addition, there are guarantees for a further 202 million euros. The federal government is responsible for around 564 million euros and the state for up to 137 million euros. The claim is spread over several annual tranches. In December, the federal government released a notice of claim. It was subject to approval by the EU Commission under state aid law.

The project will be the largest industrial project in Schleswig-Holstein for decades. Northvolt has always emphasized the locational advantages of the west coast. A lot of wind power is generated there on land and at sea - which the factory needs in large quantities.

Northvolt boss Peter Carlsson had signaled in the meantime that construction in Heide could be delayed. He cited the comparatively high electricity prices in Germany and higher subsidies in the USA as reasons. This is why the company was initially able to locate there. According to information from the German Press Agency, Northvolt is also considering tackling two construction projects. In addition to Heide, locations in the USA and Canada are being considered./akl/DP/mis