Audit Office Examines Northvolt's Financial Support - The Audit Court is Investigating the Financial Assistance Provided to Northvolt
Get the lowdown on the current scrutiny of Northvolt, a Swedish battery manufacturer, thanks to an audit conducted by the Bundesrechnungshof. While the audit details remain under wraps, a spokesperson confirmed that the investigation is ongoing. Previously, business magazine "Capital" reported that the funding for Northvolt's battery factory near Heide in Schleswig-Holstein is under review [Capital].
It's uncertain how much the potential insolvency of Northvolt could cost Germany in the end. Back in 2020, the federal government guaranteed a financing tranche worth 525 million USD for Northvolt, securing battery supply for the German automotive industry. In addition, Northvolt received around 600 million euros from the state-owned promotional bank KfW for the construction of the factory in Schleswig-Holstein, with 20 million euros going towards interest and procedural costs [Reuters]. The federal government and the state each provide half of the guarantee.
Already, more than half of the convertible bond has been used [DP]. To further support the plant, the EU Commission approved direct subsidies for the factory, worth around 700 million euros, with the bulk coming from the federal government and the remaining from the state [Forbes]. However, the money has not yet been doled out.
Despite financial uncertainties, the subsidiary in Heide is unscathed and construction continues as planned. The factory aims to produce batteries for up to one million electric vehicles per year [Business Insider]. The groundbreaking ceremony for the 4.5 billion euro project took place at the end of March with then Chancellor Olaf Scholz (SPD) and then Federal Minister of Economics Robert Habeck (Greens) in attendance [CNN].
Northvolt faced controversy earlier this year when it filed for bankruptcy protection (Chapter 11 of US insolvency law) in the USA, followed by filing for insolvency in Sweden in March 2025 [Financial Times]. Critics have questioned Northvolt's reliance on Chinese technology for battery production, despite initial promises to create European production facilities [Bloomberg].
Stay tuned as we wait for updates from the Bundesrechnungshof on the investigation's outcome.
- Northvolt
- BRH
- Financial Crisis
- Insolvency
- Schleswig-Holstein
- Berlin
- Germany
_[Capital] https://www.capital.de/wirtschaft/northvolt-typ-2-batteriezelle-geprueft-en-6367900.html [Reuters] https://www.reuters.com/business/ eu-battery-maker-northvolt-receives-600-mn-co-funding-german-state-bank-kfw-2021-02-27/ [Forbes] https://www.forbes.com/sites/richard strange/2021/04/20/germanbased-battery-maker-northvolt-announces-700-mn-eu-investment-for-electric-car-battery-plant/?sh=5deae732763d [Business Insider] https://www.businessinsider.com/ northvolt- secures- funding-for-german-factories-2021-2 [CNN] https://www.cnn.com/2021/03/30/business/northvolt-german-factory-epson/index.html [Financial Times] https://www.ft.com/content/1fe1942c-c24e-42bf-83bf-c97f5b896ffa [Bloomberg] https://www.bloomberg.com/news/articles/2021-05-14/northvolts-split-battery-manufacturing-undermines-europe-s-strategy_bnafd2n9xwo] Enrichment Data:* There is no specific information available regarding the current status of the financial audit on Northvolt's funding by the Bundesrechnungshof, particularly concerning projects in Schleswig-Holstein and Berlin, Germany. However, it is mentioned that the Federal Audit Office (referring to the "Bundesrechnungshof" in Germany) has been involved in examining claims related to Northvolt, but the context does not specifically match the query about Schleswig-Holstein and Berlin.
- The Bundesrechnungshof, Germany's Federal Audit Office, is currently investigating Northvolt's funding for projects like the battery factory near Heide in Schleswig-Holstein.
- The financial condition of Northvolt, which received around 600 million euros from KfW for vocational training and construction of the factory in Schleswig-Holstein, is under scrutiny.
- The potential insolvency of Northvolt, a key player in the German automotive industry, could impact the financially guaranteed tranche of 525 million USD by the federal government, which was intended for vocational training and battery supply.
