Future without Northvolt assistance – potential takeover in 2025?
The ongoing takeover negotiations between the bankrupt battery manufacturer Northvolt and US company Lyten have cast a shadow of doubt over the construction of a gigafactory for electric vehicle batteries in Schleswig-Holstein.
FDP MP Bernd Buchholz has expressed skepticism about potential investor Lyten, stating that he remains unconvinced until his doubts are addressed. The state government has been called upon to involve the opposition more closely and keep them informed in a comprehensive manner.
Lyten, a specialist in lithium-sulfur batteries, is known for its use in drones. The company submitted initial plans for the site in Heide to the state, and according to the Minister of Finance, Silke Schneider, the financial authorization from the 2025 budget for the battery cell factory has been deleted due to the ongoing takeover negotiations.
The EU Commission had previously approved funding of around 700 million euros for the project, with 137 million euros from the state and 565 million from the federal government. However, this funding has not been paid out due to Northvolt's bankruptcy. The funding was intended to be provided based on the Temporary Crisis and Transition Framework (TCTF), a time-limited funding instrument of the EU.
In early August, Lyten announced it would take over all remaining Northvolt sites, including Northvolt Three near Heide. The current contract conclusion time between Northvolt and Lyten for the acquisition of the insolvent Northvolt subsidiary is scheduled for the end of September 2025, with the final contract signing planned shortly thereafter. According to Lyten, the final contract is expected to be signed this year, subject to approval from European regulatory authorities.
The Minister of Economics has stated that the initial plans for the site in Heide need to be specified in order to make an assessment of whether the business model appears successful for the German location. Further details on the ongoing negotiations could only be disclosed by the Minister in the committee under exclusion of the public.
No information was provided about the potential multi-million dollar loss for the taxpayer in state funding from Northvolt or about the portion of the money from the state-owned promotional bank KfW that is still said to be available for Northvolt. The 2026 budget for Schleswig-Holstein will be discussed in the coming week in the first reading, but the authorization for the following year will also be deleted from the supplementary list.
As the negotiations between Northvolt and Lyten continue, the future of the gigafactory remains uncertain, with many questions left unanswered. The state government and the potential investors will need to provide clear answers to alleviate the doubts and concerns of the public and the opposition.
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