Stellantis, Tesla among automakers to receive European aid for battery innovation
The European Union's executive body on Tuesday approved $3.5 billion in state aid to support the European Battery Innovation project supporting work at a few dozen automakers, including Stellantis NV and Tesla Inc.
The funds from 12 member countries will support developments in every step of the battery ecosystem from raw material extraction to design and manufacturing to recycling and disposal, according to the European Commission. It expects the effort will raise another $11 billion in private investment.
"We will not recover from this crisis by rebuilding the world, as we knew it before the pandemic," the commission's executive vice president, Margrethe Vestager, said in a prepared statement. "We now have the historic chance to build a greener, more digital and resilient Europe. To tackle climate change, we have to transform how we power our world, how we heat our homes — and how we travel and move between places."
Germany is coordinating the project along with other nations including Finland, France, Italy, Poland and Spain. Forty-two automakers are participating, from BMW AG to startup Northvolt AB.
The European Union aims to reach climate neutrality by 2050 under its European Green Deal. It is seeking to reduce reliance on Asian battery producers and increase domestic production to meet the auto industry's demands.