Is the new battery plant in Germany a good idea?

DW (English)

Despite the bankruptcy of Swedish parent company Northvolt, construction of a battery plant in Heide, northern Germany, is set to continue. Europe wants to reduce its dependence on China—but uncertainty remains.

Transcript

00:00Construction is still underway.

00:03In Haida, northern Germany, a new battery plant is being built,

00:07scheduled for completion in 2026.

00:10It's a Northvolt project, meant to produce batteries

00:13primarily for electric vehicles.

00:16Just like at the company's Swedish headquarters,

00:18except that one has filed for bankruptcy.

00:21Roughly 600 million euros in public subsidies

00:24have already gone into the German plant.

00:27But what happens if construction suddenly stops?

00:32I'd feel very sorry if that happened,

00:34just as I feel sorry for the employees in Sweden.

00:37But our entire system, all our planning from 10 years ago,

00:41didn't start with Northvolt.

00:43This is a self-sustaining ecosystem.

00:46And our goal remains to attract energy-intensive companies,

00:50businesses and industries to settle here.

00:53The region is investing heavily in renewable energy.

00:59There's plenty of wind on land and offshore.

01:04That's why they're also massively expanding an existing transformer station

01:09for energy from wind power, photovoltaics and eventually green hydrogen.

01:14This energy would power the Northvolt plant if it ever opens.

01:22If we give up producing the core technology behind EVs,

01:26I'd be concerned for the entire auto industry.

01:28That's why we still back this initiative.

01:30But we've built a comprehensive system here.

01:34That's the key difference.

01:35We were already planning for new technologies before Northvolt even entered the picture.

01:40That's why the municipality is sticking to its original plans.

01:46A new highway exit is already under construction

01:49to provide direct access to the factory site.

01:52They're also building a new school and new apartments.

01:56The IG Metall Trade Union is less optimistic.

02:00It's calling on the EU Commission to step in

02:02and urging more cooperation at the European level.

02:05We need to ensure that European battery production succeeds.

02:10HEIDE is just one example.

02:12Across Europe, we're falling behind.

02:15Northvolt is just one warning sign.

02:17If Europe wants independence and sovereignty in battery production,

02:21then it must act now, before the bankruptcy in Sweden

02:24leads to decisions that also affect Germany.

02:27There are plans for nine battery cell factories in Germany,

02:35and 44 across Europe, from battery makers and automakers alike.

02:40The goal is to catch up with China in EV tech.

02:43But Northvolt isn't the only one in trouble,

02:46and it's unclear how many plants will actually be built.

02:49That's a big problem.

02:51From a strategy point of view, we have to have battery production on our own.

02:56We will lose many other markets as well.

03:00We can see it in the stationary market.

03:03Home storage systems, for example, some years ago,

03:0590% were produced by German and European manufacturers.

03:09Today, it's 90% Chinese.

03:12And the cars now coming with the Chinese batteries.

03:18In Haida, people haven't given up hope for the new factory.

03:22Many locals see it as a major opportunity for the region.

03:25While jobs are being cut across much of German industry,

03:28Northvolt could create 3,000 new positions here.

03:34Still, the latest news from Sweden has left many feeling uneasy.

03:40A lot of people here are saying,

03:42I don't think it will really happen.

03:45And I'm not sure what will come of it.

03:49Why build a battery factory in Haida?

03:52I don't see the point.

03:55And all those people, where would they even stay?

04:02It's hard to say at the moment.

04:04You hear a lot of reports and documentaries.

04:06I watched one the other day.

04:08And it's still all very uncertain, I think.

04:13At Northvolt in Sweden, they're now hoping for a new investor.

04:17So operations there can continue as well.

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