The financial troubles of Swedish battery manufacturer Northvolt may lead to substantial losses for the German government and Schleswig-Holstein state, which are jointly liable for €600 million in loans from KfW. Northvolt has filed for Chapter 11 bankruptcy in the U.S., affecting its ability to repay the loans. The KfW may not recover the funds immediately, but the German government remains hopeful for eventual repayments contingent on a successful restructuring process.