BERLIN — Northvolt believes in Germany as an industrial location and continues discussions on constructing a battery plant there, it stated on Wednesday amid hypothesis that the Swedish battery maker might divert its deliberate funding to the U.S.

The $369-billion U.S. Inflation Discount Act handed final yr prompted corporations together with Northvolt to rethink deliberate investments in Europe, lured throughout the Atlantic by large subsidies and cheaper vitality.

“We consider within the location. There are specific necessities to be able to make this possible in competitors with america,”

Nicolas Steinbacher, Head of Technique and Program for Northvolt in Germany, stated at a battery convention in Berlin. “We’re working along with the federal government in a spirit of belief to unravel these challenges,” he added.

Northvolt is holding citizen consultations in Heide in northern Germany, the place it signed a memorandum of understanding with the state of Schleswig-Holstein in 2022 for a attainable battery plant.

Northvolt’s shareholders embrace Volkswagen and Goldman Sachs.

CEO Peter Carlsson stated final October that Northvolt would possibly delay the plant, which had been slated to start manufacturing in late 2025, and prioritize growth within the U.S., citing the sharp rise in vitality costs in Europe.

“With present electrical energy costs it simply will not work,” Steinbacher stated on Wednesday, echoing the CEO’s feedback.

“We’re in good talks with native authorities and the federal authorities on methods to get the Heide venture on the street in order that the prospect of European cell manufacturing doesn’t collapse due to excessive electrical energy costs,” he stated.

The European Union responded on Tuesday to Washington’s program with its personal plans to make life simpler for inexperienced business, saying it could mobilize state help and a sovereignty fund to maintain companies within the area however the proposed fund doesn’t but have the help of all EU governments, notably Germany.