After production halt in Sweden: Work at Northvolt plant in Germany continues

The recently announced closure of Northvolt’s battery cell production in Skellefteå, Sweden—set to cease by 30 June 2025—has sparked renewed scrutiny over the company’s future projects. Adding to the speculation, the German Der Spiegel reported that one of Northvolt’s German subsidiaries, Northvolt Germany TopCo GmbH, has allegedly initiated restructuring proceedings.

“The future of the unfinished plant in Schleswig-Holstein remains uncertain,” the magazine stated. According to the report, the so-called ‘TopCo’ also includes the German project entity Northvolt Drei Project GmbH (formerly Northvolt Germany GmbH), which has received approximately €600 million in German taxpayer funding through a convertible bond.

However, in response to an enquiry from electrive, Northvolt clarified that none of its German entities are currently insolvent. The supposed restructuring procedure may refer to a StaRUG process—a preventive restructuring framework introduced in Germany in 2021. The framework allows companies facing imminent financial distress to restructure operations without formal insolvency proceedings, bridging the gap between out-of-court settlements and traditional bankruptcy processes.

KfW funds tied exclusively to Heide

Northvolt also emphasised that Northvolt Germany TopCo GmbH and Northvolt Drei Project GmbH are separate legal entities. The TopCo oversees all non-project-related operations in Germany and is exclusively financed by its insolvent Swedish parent, Northvolt AB. There is reportedly no operational link to Northvolt Drei Project GmbH, which has access to alternative sources of funding. Still, according to NorthData, the project company is fully owned by Northvolt Drei HoldCo GmbH, which in turn is a wholly owned subsidiary of Northvolt Germany TopCo GmbH—indicating some structural connection remains.

The move announced in Sweden is said to have no immediate impact on the Heide project. “Work on the project and on the construction site is continuing,” a Northvolt spokesperson told electrive. “All current measures are being implemented in close coordination with KfW. The focus is particularly on value-enhancing infrastructure work.”

The KfW convertible bond funding is project-specific and may only be used for the Heide site. It is not available to cover financial shortfalls or debts of the Swedish parent company, Northvolt AB.

The political aftermath in Germany—namely, who approved and disbursed state aid and what information was available at the time—is likely to be addressed in investigative committees at both federal and state levels. The German Federal Audit Office is also reviewing the state funding provided to Northvolt. The outcome remains open.

That construction in Heide continues without interruption, with a focus on infrastructure development, may also relate to court-appointed administrator Mikael Kubu’s ongoing efforts to secure a partial sale of the Northvolt group. “The search for a buyer is progressing,” Kubu said on Thursday, noting that negotiations are underway for various company assets—if not for the firm as a whole, then possibly for its Arctic Circle plant or the construction site in Germany.

Northvolt’s German spokesperson echoed this optimism to electrive: “Northvolt AB is still in intensive discussions with potential investors—there is significant interest in the Heide location.”

Information per e-mail, spiegel.de, northdata.de