EU Greenlights Germany's €902 Million Subsidy for Electric Vehicle Battery Plant

EU approves German subsidy for the construction of electric vehicle battery plant

The European Commission approved a €902 million national aid package by Germany on the 8th to support the Swedish company Northvolt in building an electric vehicle battery plant in Germany, in response to the challenge posed by the US "inflation reduction law" to the European industry. According to the plan notified by Germany to the European Commission, Germany will directly allocate €700 million to Northvolt and provide €202 million in guarantees to support the construction of an advanced and efficient electric vehicle battery plant in the northern city of Heide, Germany. The annual production capacity of the battery plant will reach 60 gigawatt hours and is expected to start production in 2026. The related funds will be disbursed before December 31, 2025.