620 million euros gone! Northvolt bankruptcy shakes Schleswig-Holstein

620 million euros gone! Northvolt bankruptcy shakes Schleswig-Holstein

What a shock for Schleswig-Holstein and all of Germany: the ambitious plan to put together a gigantic battery factory in the home of Economics Minister Robert Habeck has failed. The Swedish company Northvolt, to which this mammoth task should be transferred, suddenly stands in front of a huge renovation mountain. Proud 620 million euros, which were provided as a state guarantee for a loan, are now in danger. It is uncertain whether the money ever flows back to the state coffers. According to Focus this development is a bitter disappointment.

Chancellor Scholz and Minister of Economics Habeck are criticized, but defend the subscription decision. After all, it is not her own money, but that of the taxpayer, which literally seeps away in the Wattigen Schleswig-Holstein. Northvolt was originally part of the great future vision of the Minister of Economy, who proudly presented a list of investors who chose Germany as a location - a mixture of supposed location advantage or financial incentive.

dreams of large projects burst

Not only Northvolt should have redefined the German industrial landscape. Other major projects, such as Intel's Chipfabrik in Magdeburg or the green steel mill of Arcelor Mittal in Bremen, have so far only remained dreams. The large-scale investments such as the Gigafactory of Stellantis in Kaiserslautern or the expansion of the SMA solar works in Niestetal are actually only the summit of the iceberg on the list of failed plans.

What happened to the big green revolution? So many projects - all intended as lighthouses - never radiated. The planned conversion to a sustainable industry is facing a reality check that it does not exist. The energy policy framework, approval process and the economic situation simply do not correspond to the ideas of the CEOs. With his idealism, Minister Habeck is becoming more and more a Don Quichotte who is running against the windmill industry.

The future of big plans

The disappointment about the failed projects leaves a huge gap in the industrial policy agenda. Jörg Rehmann emphasizes that these projects are to be regarded as a tragic loss for the green economy. The immense financial damage signals that subsidies alone are not the saving solution for location decisions. Ultimately, market laws and customer requests decide on success or failure.

With the failed Northvolt project it becomes clear: The path to a green future is rockier than expected. However, it remains to be seen whether important teachings can be drawn from this misery. One thing is clear: the dream of a sustainable industry is far from being dreamed of, but requires a clearer change of course.