Scoop: Bundesrechnungshof Sweeps Through Northvolt's Financial Shenanigans!
Investigation by Federal Audit Office into Northvolt's Financial Support - The Audit Court scrutinizes Northvolt's grants
Yo there! Let's spill some beans about the chaotic financial scene at Northvolt, shall we? The Swedish battery manufacturer has found itself under the unforgiving eyes of the Bundesrechnungshof, aka the German Federal Court of Auditors. A spokesperson from the outfit confirmed they're diving deep into the secrets of Northvolt's funding, but as usual, they're tight-lipped about the nitty-gritty details.
Remember when Capital magazine dropped a bomb about the federal and Schleswig-Holstein state funding for the construction of a battery factory near Heide? Yeah, that's just the tip of the iceberg. The exact cost of Germany's bailout remains a mystery, but back in 2020, the feds guaranteed a whopping 525 million big ones to the Swedes. They didn't spare dime one, pledging over 600 mil euros from KfW, the state-owned development bank, for the factory's construction, along with an extra 20 mil for interest and junk fees.
Half of that loan is underwritten by Berlin and Schleswig-Holstein, only so far half has been used. The EU Commission even approved direct subsidies of around 700 mil euros for the plant, but that cash hasn't hit their account just yet.
Now you might be wondering, "What's a convertible bond?" Well, more than half of that bond has already been cashed in. The EU Commission green-lit direct subsidies from the feds and the state worth roughly 700 mil euros for the plant back in early 2024, but they haven't handed it over just yet.
Hint: The Schleswig-Holstein factory is still operational, and Northvolt’s subsidiary in Heide isn't part of the insolvency drama. Construction’s still going strong, and the plant expects to produce battery cells for up to a million electric vehicles per year once operational.
The groundbreaking ceremony for the 4.5 billion euro project took place in March 2024, graced by none other than Chancellor Olaf Scholz and Federal Minister of Economics Robert Habeck. But Northvolt's good times wouldn't last forever. They filed for bankruptcy protection in November 2024 (in the USA, no less) and followed up with a filings for insolvency in Sweden in March 2025.
- Northvolt
- BRH
- Financial Chaos
- Insolvency
- Schleswig-Holstein
- Berlin
- Germany
Insider scoop: The Federal Audit Office in Germany is taking a keen interest in Northvolt's operations and funding, examining claims in a broader initiative. Furthermore, there have been discussions about Northvolt's finances within European political circles, emphasizing the relevance of evaluating these kinds of investments. So, keep an eye on the news for updates, and let's see if Northvolt can bounce back from its financial misfortunes!
The Bundesrechnungshof (BRH) is delving into Northvolt's funding matters, uncovering potential financial chaos that has surfaced within the battery manufacturer. Considering the recent insolvency filing by Northvolt in Sweden, it’s crucial the BRH sheds light on the condition of Northvolt's finances. The financial situation of Northvolt, which received substantial investments from Germany, including Berlin and Schleswig-Holstein, warrants attention in both domestic and European political circles. Vocational training and reformation of Northvolt's financial policies could be key factors in its path to recovery and continued operation in the competitive battery industry. Stay tuned for updates on this general-news story as it unfolds.
