42 companies, including BMW and FCA, will benefit from the battery aid monies as well.

As reported by Bloomberg, 42 companies from dozens of different countries in Europe will share $3.5 billion in state aid headed up by the European Commission. The plan, coined European Battery Innovation, is referred to as a Project of Common European Interest by the commission. Its goal is to improve the battery value chain through additional support of related research and innovation.

Tesla is working to launch a dedicated battery production facility for its in-house 4680 cell development and implementation. The project will work alongside its upcoming Gigafactory Berlin. Telsa’s plan, in addition to related battery pursuits from companies like BMW and FCA, will benefit financially from the European Commission’s new funding aid.

The European Commission says its financial support could encourage battery-related investments to surge three times over. If this happens, it could push total investments in the segment to nearly $15 billion.

Europe hopes to cut ties as much as possible with battery producers from abroad. To achieve its ambitious goals of reaching climate neutrality by 2050, it needs to significantly increase its domestic battery market. The $3.5 billion in aid is a major step toward achieving its goal. According to European Commission Vice President Maros Sefcovic:

“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 battery aid will go specifically to four different areas outlined by the European Commission: Battery cells, battery systems, raw and advanced materials, and recycling and sustainability. While the commission provided a list of all the companies that will benefit from the aid, it didn’t specify the dollar amounts allotted to each company.

Source:Bloomberg via Teslarati

Source: Read Full Article