German Economy Minister Robert Habeck dismissed speculation that electric vehicle battery manufacturer Northvolt's bankruptcy could force losses on €600 million ($630 million) in German government-backed loans for a planned factory.

Northvolt, a Swedish-based manufacturer, has stressed that construction of its battery plant in northern Germany will not be affected by the company's decision to file for bankruptcy in US court.

Habeck, who is travelling in Kenya, said on Tuesday that the headlines he's seen in the German media on the Northvolt situation are "simply not appropriate in this matter."

Habeck said in Nairobi that Northvolt is now undergoing a restructuring process, which "many other companies have already done successfully."

He expressed hope that Northvolt will emerge more attractive to new investors, "and if that happens, if the company repositions itself, then the loans it has been granted will also be repaid."

The German development bank KfW loaned Northvolt €600 million to build the factory in the northern German town of Heide, which remains under construction.

Germany's federal government and the government of the German state of Schleswig-Holstein each guaranteed half of the loan, meaning taxpayers would be on the hook for any losses.

Technical issues had led to Northvolt's financial problems, Habeck said, but he described them as "solvable."