Northvolt Gains EU Nod for $986 Mln German Aid to Build EV Battery Plant

General view outside the Northvolt facility in Vasteras, Sweden, September 29, 2021. Picture taken September 29, 2021. REUTERS/Helena Soderpalm/File Photo Acquire Licensing Rights

The European Commission said the plant would accelerate the 27-country bloc's green transition and reduce fuel dependencies, and that the German aid was necessary as without it, Northvolt would build the plant in the United States with support from the U.S. Inflation Reduction Act.

The German aid consists of a 700-million-euro direct grant and a 202-million-euro guarantee.

The plant, to be located in the city of Heide, will have an annual capacity of 60 GWh which translates to 800,000 to 1 million electric vehicles per year, depending on the size of the battery.

Production will start in 2026 and will reach full capacity in 2029.