The European Commission has approved a €902 million German measure to support Northvolt in the construction of a plant for the production of batteries for electric vehiclesto foster the transition towards a net-zero economy, in line with the Green Deal Industrial Plan. The aid was approved under the State aid Temporary Crisis and Transition Framework, adopted by the Commission on 9 March 2023 and amended on 20 November 2023, to support measures in sectors which are key to accelerate the green transition and reduce fuel dependencies.
The German measure
Germany notified to the Commission, under the Temporary Crisis and Transition Framework, a € 902 million measure to support Northvolt in the construction of a production plant for advanced and high-efficiency electric vehicle batteries in the city of Heide. The plant will have an annual capacity of 60 GWh. This translates to 800,000 to 1 million electric vehicles per year, depending on the size of the battery. The plant will start producing in 2026 and will reach full production capacity in 2029.
Under the measure, the aid will take the form of a €700 million direct grant and a €202 million guarantee. Without the aid, Northvolt would establish the plant in the United States, where support was offered in particular under the Inflation Reduction Act.
€902 million German State aid measure to support Northvolt (europa.eu)