The European Union announced the beneficiaries of a new 2.9 billion euros ($3.5 billion) fund to support battery production projects for electric vehicles and Tesla, BMW, FCA are amongst the top beneficiaries.
European Battery Innovation
The program is called ‘European Battery Innovation’ and it is led by the EU Commission as a ‘Project of Common European Interest’ (“IPCEI”) with the goal to “support research and innovation in the battery value chain.”
Under the program, they plan to provide €2.9 billion ($3.5 billion) in funding in the coming years to several projects, which will then be supported by another €9 billion in private investments.
The projects need to meet certain conditions:
- The project contributes to a common objective by supporting a strategic value chain for the future of Europe in particular with respect to clean and low emission mobility.
- The project is highly ambitious, as it aims at developing technologies and processes that go beyond current technology and will allow major improvements in performance, safety and environmental impact.
- The project also involves significant technological and financial risks, and public support is therefore necessary to provide incentives to companies to carry out the investment.
- Aid to individual companies is limited to what is necessary, proportionate and does not unduly distort competition. In particular, the Commission has verified that the total planned maximum aid amounts are in line with the eligible costs of the projects and their funding gaps. Furthermore, if large projects covered by the IPCEI turn out to be very successful, generating extra net revenues, the companies will return part of the aid received to the respective Member States (claw-back mechanism).
- The results of the project will be widely shared by participating companies benefitting from the public support with the European scientific community and industry beyond the participating companies and countries. As a result, positive spill-over effects will be generated throughout Europe.
Tesla, BMW, FCA amongst top beneficiaries
The commission has approved projects from 42 companies to receive money from the fund.
While they provided a list of the beneficiaries, they didn’t release the actual amounts being released to each company.
The projects are split into 4 categories: Raw and advanced materials, Battery cells, Battery systems, and Recycling and sustainability.
Tesla has been approved in 3 categories:
FCA and BMW have both been approved in two categories.
Other known names in the EV markets, like NorthVolt and Rimac, have also been approved and will receive funds to help them build batteries for electric cars in Europe.
The actual fund attributions are expected to be released at a later date.
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