Economic Auditors Assessed Northvolt’s Risk of Complete Loss of Funding at One Percent
A report, commissioned by the former German Federal Minister of Economics Robert Habeck, has revealed the findings of an economic audit of the Swedish company Northvolt, as reported by the “Industrie und Handel” newsletter of the “Politico” publication.
The auditors presented a mixed assessment of Northvolt, citing concerns that the company has “no relevant financial reserves” and “relatively few successes” compared to established battery manufacturers. However, they also noted a high sales potential, a sufficiently diversified customer base and the establishment of the company in Heide, Schleswig-Holstein, as “essentially economically viable”.
The report estimates the probability of Northvolt repaying the 600 million euros in funding at 86 percent.
The Christian Democratic Union has criticized Habeck for the funding, with Andreas Lenz, the union’s economic policy spokesperson, stating, “A favorite project was pushed through without regard for possible losses and risks were ignored, critical voices suppressed. Even and especially as Northvolt was already in economic difficulties.”
Habeck is scheduled to appear before the Budget Committee on Wednesday and the Union is also calling for an investigation committee to be established to investigate the allocation of the funding to Northvolt.