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The European Union has announced the beneficiaries of a new 2.9 billion euros ($ 3.5 billion) fund to support projects to produce batteries for electric vehicles and Tesla, BMW, FCA are among the first beneficiaries.
European battery innovation
The program is called “European Battery Innovation” and is led by the European Commission as a “Project of Common European Interest” (“IPCEI”) with the aim of “supporting research and innovation in the battery chain. battery value ”.
Under this program, they plan to provide 2.9 billion euros ($ 3.5 billion) in funding in the coming years to several projects, which will then be supported by an additional 9 billion euros of private investments.
Projects must meet certain conditions:
- The project contributes to a common objective by supporting a strategic value chain for the future of Europe, especially with regard to clean and low-emission mobility.
- The project is very ambitious, as it aims to develop technologies and processes that go beyond current technology and will allow major improvements in terms of performance, safety and environmental impact.
- The project also involves significant technological and financial risks, and public support is therefore necessary to encourage companies to make the investment.
- Aid to sole proprietorships is limited to what necessary, proportionate and does not unduly distort competition. In particular, the Commission has verified that the total amount of maximum aid foreseen corresponds to the eligible costs of the projects and their financing gaps. In addition, if large projects covered by the IPCEI prove to be very successful, generating additional net income, the companies will return part of the aid received to the respective Member States (recovery mechanism).
- The results of the project will be widely shared by the participating companies enjoying public support from the European scientific community and industry beyond the participating companies and countries. Therefore, positive spinoffs will be generated across Europe.
Tesla, BMW, FCA among the main beneficiaries
The commission approved plans from 42 companies to receive money from the fund.
Although they provided a list of beneficiaries, they did not communicate the actual amounts paid to each company.
The projects are divided into 4 categories: raw and advanced materials, battery cells, battery systems and recycling and sustainability.
Tesla was approved in 3 categories:
Tesla plans to produce its new 4680 battery cell at Gigafactory Berlin, where it also plans to produce the Model Y and other vehicles.
FCA and BMW were both approved in two categories.
Other names known in the electric vehicle markets, such as NorthVolt and Rimac, have also been approved and will receive funding to help them build batteries for electric cars in Europe.
Actual fund allocations are expected to be published at a later date.
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