German State Premier Accuses Auto Industry of Undermining Domestic Battery Production
Schleswig-Holstein’s Minister-President Daniel Günther of the Christian Democratic Union (CDU) has launched a sharp critique of Germany’s automotive industry, accusing it of a concerning lack of investment in domestic battery production facilities. Günther’s comments, delivered to the German newspaper “Welt”, follow growing concerns surrounding the potential failure of a planned Northvolt battery plant in Heide, Schleswig-Holstein and reflect a widening rift between regional and federal government.
Günther expressed bewilderment regarding the disinterest displayed by major German automakers, arguing that while the transition away from combustion engine vehicles necessitates a strategic shift towards electric mobility, the industry’s hesitance to invest in battery infrastructure risks jeopardizing Germany’s continued leadership in the automotive sector. “It casts a poor light on our major automobile concerns that initially only a Swedish and now an American company are showing interest in the project we had hoped for” he stated.
The Northvolt project, initially promising approximately 3,000 jobs in the Dithmarschen region, has collapsed, leaving the state scrambling to secure alternative investment. Negotiations are currently underway between the U.S. firm Lyten and both the federal government and Schleswig-Holstein for the construction of a smaller battery production facility on the same site. However, a disagreement has erupted regarding potential financial support, with Schleswig-Holstein accusing the federal Ministry for Economic Affairs of inadequate communication and a lack of commitment.
The situation has escalated, with Günther threatening legal action against the federal government and even the Schleswig-Holstein’s own state economics ministry, headed by Katherina Reiche. Günther alleges that Reiche is withholding crucial information from the state parliament – information deemed essential for legislative decisions regarding the release of further joint credit funds. “This is so important that we as a state government do not rule out legal steps to gain access to this information” Günther declared, highlighting the severity of the situation and suggesting deep dissatisfaction within his own political ranks.
The dispute underscores a larger, systemic challenge facing Germany’s industrial strategy: a seeming reluctance by established players to embrace the structural changes demanded by the electric vehicle revolution and a growing tension between regional ambitions for economic growth and the often-cautious approach of federal economic policy. The legal threat signifies a potential power struggle with the federal government over the future of Germany’s battery industry and the preservation of local jobs.
