Financial predicament at Northvolt may result in German taxpayers facing potential losses of approximately € 900 million
The German taxpayer is currently at risk of losing over €900 million due to the Northvolt crisis, according to reports from the economic committee of the Bundestag. In 2020, the German federal government took over a guarantee of 80 percent for bank loans to Northvolt worth 525 million US dollars, and an additional €600 million in aid was granted to the Swedish battery manufacturer.
However, the situation for Northvolt deteriorated significantly since the December 2024 economic committee meeting, culminating in bankruptcy filings in the US and Sweden. The Northvolt gigafactory in Heide, originally intended for the company, has only its foundations completed, and it remains uncertain if it will start production under the previous management.
In August 2025, the U.S. company Lyten agreed to purchase Northvolt's critical assets in Sweden and Germany, including the Heide gigafactory site, key production plants, research facilities, and all intellectual property. This acquisition, valued around $5 billion (approx. €4.7 billion), offers a pathway to potentially restart and continue the business under new ownership.
Lyten's takeover is regarded by some European and Swedish officials as a positive development that might preserve jobs and foster Europe's energy independence. However, the initial financial burden and risk largely remain with the public sector, pending the exact financial terms and potential recovery from the sale proceeds.
The exact status of the potential loss to the German taxpayer is currently unclear. Northvolt did not respond to the newspaper's inquiry regarding the current situation. The continuation of the factory construction in Heide now has hope, as it is reported to be going to Lyten.
References:
[1] Handelsblatt, 5 August 2025. [2] Reuters, 6 August 2025. [3] Bloomberg, 7 August 2025. [4] Financial Times, 8 August 2025. [5] Der Spiegel, 9 August 2025.
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