A spokesman for the Ministry of Economy said in an emailed response to questions from Bloomberg that this monththe federal government will reimburse the KfW lender for the value of the convertible bonds and the related costs.
The German government takes over Northvolt’s debt
Earlier, the Bild newspaper reported that the government had suffered total expenses of €620 million for KfW’s claims against Northvolt.
However, according to the ministry’s spokesman, it is not yet possible to say definitively whether the German government will suffer losses. According to the spokesman, the state of Schleswig-Holstein, where the Swedish battery manufacturer’s factory is to be located, has accepted a guarantee of EUR 300 million for the convertible bonds and will return this amount to the federal government.
Fall of Northvolt
The privately owned Swedish company Northvolt was seen as a flagship example of European hopes to create an independent electric vehicle supply chainin the fight against the domination of prosperous Chinese and South Korean producers. The factory, which was to be built near the German city of Heide, was to produce one million batteries a year. Northvolt intended to start production at the new factory in 2026.
Unfortunately, the entire project failed. Last month Swedish battery manufacturer filed for bankruptcy protection in the US after a desperate attempt to secure rescue financing failed, a the Swedish government refused to support a private company.
