The Swedish battery manufacturer Northvolt wants to set up a battery cell production facility with around 3,000 jobs near Heide on the west coast of Schleswig-Holstein.
A corresponding declaration of intent will be signed together with the state government and the Heide region, announced Northvolt AB on Tuesday.
The start of production is planned for 2025.
A plant for the recycling of used batteries from discarded e-cars is to be built parallel to the production.
In the previous week, several media had reported on the project.
From the point of view of the Swedes, in addition to the favorable location between northern and central Europe, the “richness in clean energy” in the north spoke in favor of the choice of location.
The company's declared goal is to produce batteries for e-cars with "the smallest ecological footprint in continental Europe".
The Heide location is the "key to achieving this goal," said Northvolt boss and co-founder Peter Carlsson, according to the release.
"The region is home to Germany's cleanest energy grid, characterized by a surplus of electricity from onshore and offshore wind power and boosted by clean energy provided through grid interconnections with Denmark and Norway."
The company states the planned capacity as 60 gigawatt hours (GWh) per year, which is sufficient for around one million electric vehicles.
Like the US electric car manufacturer Tesla, Northvolt also calls the factory "Gigafactory".
The Swedes have already advertised the first jobs for the Heide location online.
Northvolt works closely with Europe's largest car manufacturer Volkswagen, which also has a stake of around 20 percent in the young Swedish company.
The first Northvolt plant in Skellefteå, northern Sweden, started production of battery cells at the end of 2021.
Northvolt also wants to produce complete battery systems in a plant in Gdansk, Poland.
Northvolt also wants to set up battery cell production with Volvo in Gothenburg, Sweden.