Overview

• The Bundesrechnungshof found the Economy Ministry relied largely on optimism and skipped a “multiple eyes” principle when evaluating a €600 million convertible bond for Northvolt.
• Key decision steps with PwC, including videoconferences, were not documented, preventing external review of the support package.
• Germany backed an 80 percent guarantee on a $525 million Northvolt credit line in 2020 and saw KfW underwrite a €600 million convertible bond in 2023.
• Northvolt filed for US Chapter 11 protection in November 2024 and entered insolvency in Sweden in March, leaving its German plant in Heide’s future uncertain.
• Lawmakers and opposition figures are demanding fuller transparency and stricter accountability as the government’s potential losses top €1 billion.