The European Commission announced €36 million in investment aid for Korean chemical manufacturers LG Chem in Poland. The cash boost, for a new electric vehicle battery factory in the country’s Dolnoślaskie region, was found to be in line with EU rules on state aid and will also help with the development of the region whilst preserving competition.
The investment aid will support the €325 million already invested by LG Chem into the new vertically integrated lithium battery (Li-ion) manufacturing plant. The primary use for Li-ion batteries is in electric vehicles and the Polish plant is set to supply over 80,000 vehicles with batteries each year.
700 new direct jobs are expected to be created from the project. The Dolnoślaskie region, where the plant is located, is an area eligible for regional aid under EU rules.
LG Chem Dolnoślaskie
The aid was assessed under the Guidelines on Regional State Aid, which seeks to support economic development in the EU’s less developed regions, whilst also fostering regional cohesion for the Single Market.
The European Commission concluded that without this investment aid, the project would not have been carried out at all and that it would contribute to job creation and regional economic development. The Commission also said that any competition distortion brought by the state aid would be outweighed by the positive effect of the project.
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