Tesla's European Battery Production Will Soon Greatly Benefit from EU's $3.5B Aid
The EU paved the way for companies like Tesla and BMW to get about $3.5 billion of state aid for battery producing projects and Tesla Giga Berlin will greatly benefit from this aid.
According to Bloomberg, the European Commission expects the support to trigger more than three times as much private investment, bringing the total spent to about 12 billion euros. The aid will go to 42 companies across a dozen countries, with beneficiaries also including Fiat Chrysler owner Stellantis NV and startup Northvolt AB.
This will greatly benefit Tesla and its Giga Berlin as "Tesla’s efforts to established a dedicated facility to produce its custom-designed 4680 cells in Gigafactory Berlin has received a notable boost, with the European Union recently paving the way for battery projects to receive about 2.9 billion euros ($3.5 billion) worth of state aid. Tesla’s 4680 battery cell plant, together with similar projects from companies like BMW, is expected to take a slice out of the $3.5 billion aid," notes Simon Alvarez at Teslarati.
According to insiders, Tesla wants to set up mass production with new technology in its planned battery cell factory in Grünheide near Berlin. According to information from industry circles, a new cell type is to be produced in the factory on Monday, which has six times more power. The plan is to manufacture dry electrodes, which require significantly less space and require less energy.
Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube.