Government incentives entice Northvolt US expansion

Surging energy costs threaten to stall Germany’s bid to build a sizeable electric-vehicle supply chain, as a result EV Battery supplier Northvolt consider postponing its planned factory in Germany. The Swedish manufacturer will decide next year whether to build the Heide facility in northern Germany in time for production to start in late 2025 or expand first in North America, where U.S. President Joe Biden is wooing cell manufacturers with billions of dollars in incentives. The law, signed Aug. 16 by President Joe Biden, includes provisions aimed at boosting U.S. manufacturing of electric vehicles and batteries, including new sourcing requirements for vehicles to qualify for EV tax credits.

The law also creates a credit for battery cells equivalent to $35 per kilowatt hour of capacity, with battery packs eligible for a credit of up to $10 per kilowatt hour of capacity, according to the congressional research service. It also provides a 10 percent credit for critical minerals production.

“Given what is happening in North America and what is happening in Europe on the other hand, with energy prices not the least, we are during next year going to decide what to prioritise,” said Jesper Wigardt, a Northvolt spokesman. A decision in favor of North America might delay the German plant “a bit.” (Source – Automotive News)