Germany will assume more than €600 million in debt related to Northvolt AB's insolvency. The federal government will reimburse KfW, the development bank that financed the construction of a battery plant in the country, for the value of a convertible bond and associated expenses.
This demonstrates Germany's dedication to supporting its domestic battery production capabilities in response to the increasing demand for electric vehicles and renewable energy solutions. The decision showcases the government's proactive approach to stabilizing key industries and ensuring the continuity of critical infrastructure projects.