The future of a planned battery factory in Heide, Germany, by Swedish company Northvolt is in jeopardy, putting €600 million in state funding at risk.

The project, initially announced in January 2024, is now facing financial and technical challenges, with Northvolt filing for bankruptcy under U.

S. Chapter 11. Despite an earlier PwC report assessing the risk of state loans at just 1%, the company’s debt has reached €6 billion.

German Economic Minister Robert Habeck has denied prior knowledge of these issues, citing contractual confidentiality as the reason for withholding the PwC report.

Critics, including opposition politicians, are demanding transparency to understand the government’s decision-making process.

The controversy raises questions about Germany’s role in European battery production and the future of state-backed industrial projects.