Thanks to a recent decision by the European Union, vehicle manufacturers such as BMW and Tesla are now able to receive as much as 2.9 billion euros ($3.5 billion) for battery projects that will enable the faster production of more electric vehicles.
This decision to provide aid comes as the 27-nation bloc remains committed to its vision for eliminating greenhouse gas emissions, as stipulated in the European Green Deal. The European Union is also looking to slash its reliance on Asian manufacturers for the supply of electric vehicle batteries.
As part of the European Green Deal, the EU is aiming to eliminate up to 55% of gas emissions from 1990 levels by the year 2030.
European Commission Vice President Maros Sefcovic released the following statement on the matter: “Europe will cement in this way its position as a global hot spot for battery investment. This pan-European project will help revolutionize the battery market.”
The state aid is expected to be allocated to up to 42 companies across a dozen countries. Some of the beneficiaries include the likes of Fiat Chrysler owner Stellantis NV and startup Northvolt AB.
With his company expected to receive some of the aid, Tesla CEO Elon Musk revealed his organization’s plans to construct a battery-cell production facility at the vehicle-assembly plant it’s building near Berlin.
