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4w ago

Northvolt Bankruptcy Leaves German Governments Liable for €600 Million Credit

Tax watchdogs press to unseal a classified PwC report on Northvolt risks, with administrators overseeing ongoing Heide construction

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Der damalige Wirtschaftsminister Robert Habeck (Grüne) und Bayerns Ministerpräsident Markus Söder (CSU) im Februar bei der Eröffnung einer Handwerksmesse.
Bayerns Ministerpräsident Markus Söder (CSU)
Der damalige Bundeswirtschaftsminister Robert Habeck (Grüne) (3. v. r.) war bei Baubeginn der Northvolt-Fabrik sehr optimistisch (Archivbild).

Overview

  • Insolvency administrators continue building the Heide gigafactory and court potential investors after Northvolt filed for Chapter 11 in the US in November 2024 and for insolvency in Sweden in March 2025, halting production by June.
  • The state-owned KfW Bank extended a €600 million credit in late 2023, for which the German federal government and Schleswig-Holstein jointly stand liable following former Economy Minister Robert Habeck’s approval.
  • A PwC consultancy report that warned of low production maturity, high failure rates, and potential losses exceeding €1 billion remains classified, prompting opposition calls for its publication.
  • The Bund der Steuerzahler has proposed legal reforms to hold politicians personally liable for negligent use of taxpayer funds in large-scale projects.
  • Bavarian Prime Minister Markus Söder has urged a Bundestag inquiry into the project’s approval process to scrutinize the roles of key political figures.