EU Matches U.S. Subsidies with $986 Million Aid for Northvolt's German Battery Plant

The aid, approved under the Temporary Crisis and Transition Framework, supports Northvolt's environmentally friendly battery production, with operations set to start in 2026.

• 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.

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