Financial predicament at Northvolt escalates, revealing increased risk to taxpayers than initially anticipated
In a recent meeting, it was confirmed that the potential financial burden on German taxpayers due to the crisis at Swedish battery manufacturer Northvolt could amount to around €900 million. This estimate includes previously known losses of €600 million, along with an additional reported €300 million exposure [1].
The crisis at Northvolt, which filed for bankruptcy in March 2025 [1], has already seen German taxpayers lose approximately €600 million, as a result of aid provided in the form of a convertible bond for a factory in Heide [2]. The construction site in Heide is now set to be taken over by US startup Lyten [3].
The potential loss of an additional €300 million was first reported by Handelsblatt in December 2024 [4]. This figure was confirmed by Robert Habeck (Greens) during the meeting [5]. The exact terms of subsidy transfers and any further financial obligations remain to be seen, which could potentially alter this estimate [1].
The German Ministry for Economic Affairs has acknowledged that under certain conditions, subsidies granted to Northvolt’s German subsidiaries could be transferred with a new owner, complicating the financial impact [1]. However, no new information has been provided about the federal government's current risk position or the specifics of Northvolt's ongoing restructuring process.
In 2020, the German federal government took on an 80% guarantee for bank loans to Northvolt worth 525 million US dollars [6]. Despite this, no new information has been given about the previously reported potential loss of an additional €300 million to the German taxpayer [4].
As the situation with Northvolt continues to unfold, German taxpayers await further clarification on the financial implications of the crisis and the potential recovery efforts. Northvolt, for its part, did not respond to an inquiry from the newspaper [1].
[1] Handelsblatt [2] Handelsblatt [3] Reuters [4] Handelsblatt [5] Tagesspiegel [6] Handelsblatt
The potential loss of an additional €300 million to German taxpayers from the ongoing crisis at Northvolt, originally reported by Handelsblatt in December 2024, was confirmed during a recent meeting. The financial implications of the crisis, including the potential transfer of subsidies to a new owner, are yet to be fully understood, with the exact terms of subsidy transfers and any further financial obligations remaining unclear.
