Overview

• The European Commission approved a $986 million German state aid for Swedish battery company Northvolt to build a battery production plant in Germany, matching the subsidies offered by the U.S. under the Inflation Reduction Act.
• The aid is the first individual aid approved under the Temporary Crisis and Transition Framework, a new feature allowing European companies to find equivalent investment or aid in Europe that they can receive in other jurisdictions.
• The proposed plant will be located in the city of Heide, with an annual capacity of 60 GWh, able to produce batteries for approximately 800,000 to 1 million electric vehicles annually.
• Northvolt's commercial sodium-ion battery cells are free from lithium, nickel, cobalt, and graphite, aligning with the EU's efforts to produce more environmentally friendly and responsible batteries.
• The plant's operations are slated to start in 2026, with full production capacity expected by 2029.