The German state of Schleswig-Holstein is escalating tensions with Berlin and publicly criticizing the nation’s automotive industry over what it perceives as a critical lack of commitment to battery production within Germany. Daniel Günther, Minister-President of Schleswig-Holstein (CDU), has sharply condemned the tepid engagement of major German car manufacturers in establishing domestic battery factories, citing the near-collapse of the Northvolt project in Heide as a stark illustration of the problem.
Günther expressed bewilderment to the “Welt” newspaper regarding the industry’s reluctance to embrace battery production, highlighting the irony of relying on Swedish and now American companies to secure Germany’s future in electric vehicle manufacturing. “The fact that initially only a Swedish and now an American company is interested in the project reflects poorly on our major automotive corporations” he stated. While acknowledging the potential for a delayed phasing out of combustion engines, Günther insists that electric mobility is the inevitable future and a leading position for German automakers will be unsustainable without a significant onshore battery production capability.
The Northvolt project, initially promising approximately 3,000 jobs in the Dithmarschen region, is now teetering on the brink of failure. While US firm Lyten is currently in negotiations with both the federal government and Schleswig-Holstein regarding the construction of a smaller battery production facility at the same location, the process is being hampered by disputes over financial support. These disagreements are further exacerbated by accusations from Schleswig-Holstein that the federal Ministry for Economic Affairs is employing deficient communication practices.
The situation has triggered a direct threat of legal action from Günther against the federal government and specifically against Katherina Reiche, the Minister for Economic Affairs, who is a fellow party member. Günther accuses Reiche of withholding crucial information from the Kiel state parliament, information deemed essential for the parliament’s decision regarding the release of further joint credit funds. He emphasized the gravity of the potential information blackout, stating that his government is prepared to pursue legal avenues to access the details necessary for proper decision-making, effectively escalating a political dispute that risks undermining Germany’s ambitions in the critical battery technology sector. This underscores a growing concern that political maneuvering and funding discrepancies are jeopardizing Germany’s competitiveness in the global EV market.