Germany Pumps €1B into Northvolt’s Innovative Sodium-Ion Batteries

The European Commission (EC) has approved a financial envelope of nearly EUR 1 billion by the German government in support of Swedish firm Northvolt. The measure will ensure that Northvolt new battery plant, which is based on the innovate sodium-ion chemistry. will stay in the EU, and not move to the USA.

“This $986 million German measure is the first individual aid being approved to prevent an investment from being diverted away from Europe, under the new possibility offered by the Temporary Crisis and Transition Framework since March 2023.” 

EC EVP Competition Policy Margrethe Vestager

It is worth recalling that the USA is offering incentives for innovative companies in the #EV industry to relocate across the Atlantic under the Inflation Reduction Act (IRA). Therefore, the EU has responded with its own Temporary Crisis and Transition Framework in March 2023 which provides similar or better conditions to avoid key companies to offshore their operations.

Northvolt plans to establish a production plant in Heide. The state-of-the-art manufacturing facility will have an annual production capacity of 60 GWh of Na-Ion batteries. Such a batch of batteries is estimated to be enough to power 800,000 to 1,000,000 vehicles. The new plant is expected to become operational by 2026 and will achieve full capacity by 2029.

EVP Vestager highlighted the measure is in line with the EU Green Deal Industrial Plan and displays the EU’s commitment to fight #ClimateChange. The EU plans to provide some EUR 4 billion to support its economies reach #NetZero by providing a conducive environment for European firms working towards the #EnergyTransition.