EU approves battery aid in scramble for electric vehicles
The European Union has given clearance for 42 countries, including larger companies such as Tesla, BMW and Stellantis to receive €2.9 billion in state-aid towards battery projects as the bloc scrambles to meet electric vehicle demand and member states attempt to meet their climate goals.
The European Commission expects the scheme to rally in roughly three times more in private investment, potentially bringing the total to around €12 billion.
Read more: World's largest diesel engine factory shifts production to electric
The aid will go to 42 companies across a dozen countries as the bloc attempts to slash greenhouse emissions under the European Green Deal - their goal is to reach complete carbon-neutrality by 2050.
The EU's short-term goal is to slash greenhouse emissions by 55% of 1990 levels by 2030.
As part of this new initiative, the EU wishes to reduce its reliance on batteries from Asian producers and has set a goal of 2027 to phase them out completely.
The Commission claims the market value of EU batteries will jump to €250 million by 2025 to meet the demands of producers.
European Commission Vice President Maros Sefcovic said: “Europe will cement in this way its position as a global hot spot for battery investment. This pan-European project will help revolutionise the battery market.”
Aid for the projects is expected to be complete by 2028 and will be disbursed by countries like Finland, Poland, France and Spain.
Tesla recently commenced construction of the world's largest battery plant just outside Berlin, it's first in Europe.
It is expected to have an annual output of 250GW.
Read more: Tesla commences construction of world's largest battery factory plant near Berlin
Production on cars is set to commence in the middle of the year, and it may produce as many as 500,000 vehicles annually.
The project is far along but still requires approval from authorities.
Other automakers, including some Asian battery producers such as Panasonic and LG are said to be planning expansions into the region.
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