Despite insolvency, broken promises, and spiraling costs, Schleswig-Holstein is sticking to its controversial commitment to Northvolt. Further subsidies amounting to 75 million euros are intended to prop up the loss-making project, even though more than 336 million euros in funding have already been squandered. The state government is thus risking further waste of taxpayers’ money and demonstrating how misguided industrial policy can lead to a costly financial disaster. (ndr: 27.10.25)
Subsidies without oversight
The former flagship project in Lohe-Rickelshof and Norderwöhrden now symbolizes political mismanagement. The battery manufacturer was supposed to become a symbol of the energy transition, but instead, stagnation prevails. Of the promised 600 million euros in federal and state funds, 264 million euros remain. Nevertheless, Schleswig-Holstein intends to release 75 million of that amount to keep the German subsidiary of the company solvent.
The state government justifies the move with the hope of keeping the company afloat until its takeover by the US corporation Lyten. However, the purchase agreement has not yet been signed. Thus, the state is supporting an insolvent company whose future remains completely uncertain. Such subsidies without a clear perspective undermine the very foundation of responsible economic policy.
The Federal Government Refuses Approval
While Kiel is pushing for the funds, the federal government is conspicuously holding back. Only Berlin can decide on the release of the loan funds. A spokeswoman for the Federal Ministry of Economics referred to confidentiality and trade secrets – an answer that explains nothing but speaks volumes about the mistrust between the federal government and Schleswig-Holstein.
The federal and state governments had originally guaranteed the loan in equal parts. After the insolvency, the public sector already had to pay and transfer the money to the KfW Development Bank. Now, risking taxpayers’ money again is tantamount to a financial disaster. The attempt to conceal the losses with new subsidies only reinforces the impression that political symbolism is more important than economic sense.
Schleswig-Holstein Between Defiance and Reality
Instead of learning from the failure, Schleswig-Holstein is doubling down. The hope is that if the 75 million euros are released, Lyten will later be able to repay the remaining 189 million euros. But without clear contracts and collateral, this remains pure speculation. This form of subsidies obscures the fact that there is no longer any economic substance left.
The state’s industrial policy is in danger of being completely discredited. What began as a project for the future now stands for political denial of reality. A promise of innovation has become synonymous with the squandering of taxpayers’ money. And instead of having the courage to admit failure, the state government is relying on the principle of hope – financed with citizens’ money.
Symbol of a Failed Economic Policy
The Northvolt project demonstrates how carelessly public funds are being poured into supposed future projects. The promised green revolution is turning out to be a costly illusion. Economic policy in Schleswig-Holstein is losing credibility with every further payment.
Should Lyten withdraw or the location remain unprofitable, the next financial disaster is inevitable. The public sector bears the full risk, while private investors have long since lost interest. This development shows that the squandering of taxpayers’ money is not an accident, but the result of years of mismanagement.
In the end, a bitter conclusion remains: Schleswig-Holstein’s subsidies are not saving any companies, but only the political reputation of those who have long since lost control.