US climate subsidies unsettle Europe's green industry plans

HEIDE, Germany - An empty field near Heide in a corner of Germany known more for its cabbage farming is the chosen site for a huge battery factory and potential pillar of the country’s future green economy.

But massive green subsidies on offer in the United States – totalling US$370 billion – have unsettled the plans and sent European policymakers scrambling to find a response.have put a question mark over the Northvolt project in Heide.Northvolt was “at a point where we can give priority to expansion in the United States” with other projects delayed, CEO Peter Carlsson said in October.In Heide, officials were “surprised” by Northvolt’s comments but remain optimistic that the factory will be built.

Germany’s future as an “auto nation” depended on having a domestic industrial base capable of building “the most important components in terms of added value”, including batteries, local IG Metall union leader Martin Bitter told AFP.

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