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Northvolt’s electric battery factory in Germany in danger

Northvolt, a battery factory project in Germany, is in danger because of the American climate plan. European leaders and industry are calling for a strong response to protect green transition efforts.

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Swedish company Northvolt has chosen a field in northern Germany to build an electric battery factory with the aim of equipping one million electric vehicles a year and reducing Europe’s dependence on Chinese manufacturers. However, the American climate plan “Inflation Reduction Act” could jeopardize this project.

 

The American climate plan

The U.S. plan calls for more than $430 billion in investments to reduce greenhouse gas emissions, and that could reshuffle the deck for the German project. In October, Northvolt CEO Peter Carlsson said the project “may be postponed” to prioritize expansion in the United States.

 

Call from Europe and industry for a strong response

The mayor of Heide called on the European Union to act to convince Northvolt to “stay” to carry out this “very important” project. Martin Bitter, a spokesman for the metalworking union IG Metall, called on Europe to react to the American offer. European industry calls for a strong response from EU countries to avoid compromising efforts to achieve a green transition.

Northvolt tried to reassure that the Swedish company remains “committed to its expansion in Europe” and that discussions on the Heide project are continuing. However, many groups such as solar panel manufacturers have already begun to look to the United States.

Northvolt’s electric battery factory project in Germany is in danger due to the US climate plan “Inflation Reduction Act”. Europe and European industry are calling for a strong response to avoid compromising the efforts of ecological transition. Northvolt remains committed to the project, but many industrial groups are turning to the United States.

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