BERLIN (dpa-AFX) - The consequences of the financial crisis at Swedish battery manufacturer Northvolt are now also being investigated by the German Federal Audit Office. An investigation into Northvolt's claim is underway, a spokeswoman said. The Audit Office does not comment on the content or timing of ongoing investigations. This was previously reported by the business magazine "Capital." According to the report, the federal government and the state of Schleswig-Holstein have been actively reviewing the claim for the construction of a battery factory near Heide since the beginning of the year.
It is still unclear how much the insolvency will ultimately cost Germany. In 2020, the federal government secured 80 percent of a commercial bank financing tranche for the Swedish company worth over 525 million US dollars to ensure the supply of batteries to the German automotive industry.
In addition, Northvolt has received around 600 million euros from the state-owned development bank KfW for the construction of the factory in Schleswig-Holstein. On top of this comes 20 million euros for interest and legal costs. The federal and state governments are each providing half of this amount.
Direct claim
According to information from the German Press Agency, more than half of this convertible bond has already been used. In addition, at the beginning of 2024, the EU Commission approved direct claims from the federal and state governments for the plant in Hohe amounting to around 700 million euros (137 million euros from the state, 564 million euros from the federal government). However, this money has not yet been paid out.
Northvolt, a manufacturer of batteries for electric cars, has long been considered a great hope for the European automotive industry. The German subsidiary in Heide is not affected by the insolvency. Construction work there is continuing, according to a company spokesperson. Battery cells for up to one million electric cars per year are to be produced there.
The green light for the €4.5 billion project was given at the end of March 2024 by, among others, the then Chancellor Olaf Scholz (SPD) and the then Federal Minister for Economic Affairs Robert Habeck (Greens).
In November, the company filed for bankruptcy protection (Chapter 11 of US bankruptcy law) in the US. In March 2025, the company filed for bankruptcy in Sweden./akl/DP/mis
