Germany’s Economy Minister Katherina Reiche is reportedly accelerating plans to transfer Northvolt’s unfinished battery project in Heide to U.S.-based battery manufacturer Lyten, according to a report by Der Spiegel.
The publication reported that the German Federal Ministry for Economic Affairs has placed Northvolt Drei Project GmbH, the German project company behind the planned battery factory, under state control as an interim step before completing the proposed sale.
According to the report, the shares of Northvolt Drei Project GmbH are currently being held in trust for the German government through LG Batterie GmbH and another intermediary company. The move has not been publicly announced.
Government Seeks to Advance Sale
Der Spiegel said the government’s intervention followed a ruling by a Hamburg court related to remaining public subsidies of up to €264 million that authorities were seeking to protect.
The ministry is now reportedly working to transfer the project company, or its remaining assets, to Lyten as quickly as possible.
In August 2025, Lyten announced plans to acquire the business of Northvolt’s insolvent Swedish operations as well as the non-insolvent battery project in Heide, Schleswig-Holstein.
More recently, Lyten reached an agreement with Germany’s state-owned development bank KfW, the federal government and the state of Schleswig-Holstein to acquire the Heide project for approximately €60 million.
The proposed transaction includes the project site and production equipment already purchased for the planned battery factory. However, the facility has not yet entered production and remains largely an undeveloped industrial site rather than an operational manufacturing plant.
Parliamentary Approval Expected
The sale is expected to move forward following a special meeting of the finance committee of the Schleswig-Holstein state parliament, where lawmakers are due to consider approval of the transaction. The state is among the project’s creditors through a convertible bond.
According to the report, Lyten is expected to assume its first responsibilities for the German project company from July 1, including responsibility for employee salary payments.
Sale Price Draws Scrutiny
The reported €60 million purchase price has prompted questions because it is substantially below the estimated investment already made in the project.
According to Der Spiegel, the industrial site reportedly cost around €50 million, while construction work added approximately €260 million. The project company also purchased battery cell manufacturing equipment valued at about €51 million.
The report added that the German federal government and the state of Schleswig-Holstein are expected to bear additional costs in the tens of millions of euros to wind up the existing project company, including severance payments and administrative expenses.
Overall, the financial gap is reported to exceed €300 million, potentially leaving public authorities to absorb much of the project’s losses. Der Spiegel said the situation has raised questions over whether the transaction could amount to indirect financial support for Lyten.
According to the magazine, the German Federal Ministry for Economic Affairs declined to comment on the matter.