Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

EU announces €4bn aid deal to back battery and green tech factories

by January 9, 2024
January 9, 2024
EU announces €4bn aid deal to back battery and green tech factories

The EU has announced €4bn (£3.4bn) of state aid investments in new factories producing electric batteries for cars, heat pumps and solar panels as it seeks to accelerate production and the uptake of green technologies and combat cheap Chinese imports.

The Swedish battery producer Northvolt will receive €902m in state aid to build a new factory in Heide in Germany, while a wide range of clean tech factories in France are to get a €2.5bn bump in state aid.

The investments form part of the EU’s mission to be climate neutral with net zero gas emissions by 2050 but are also designed to help insulate the bloc from the growing competition from Chinese car, solar panel and other green tech factories.

It follows the approval of similar schemes in Austria, Belgium, Germany, Hungary, Italy, Slovakia, and Spain, worth in total €9.1bn, and with several others in the pipeline.

“The production of net zero equipment in Europe is of strategic interest for the European economy and society. It has immense importance for achieving our goals in clean mobility, sustainability, and competitiveness,” said Margrethe Vestager, who is back in her role as executive vice-president of the commission in charge of competition policy after an unsuccessful bid to head the European Investment Bank.

The EU said the money going to Northvolt’s gigafactory would enable it to “produce battery cells in Europe instead of the US”.

It is the first state aid approved under a special scheme aimed to stop production facilities being lured overseas with the promise of greater foreign subsidies.

Already Europe is feeling the strain of the head start China has had on producing lower cost electric cars.

Last month the European leaders agreed to a three-year suspension of a 10% tariff that was due to come in on EU electric cars exported to the UK and British electric cars exported to the EU amid fears the increased cost to the consumer would give a further advantage to Chinese competitors.

The Chinese conglomerate Build Your Dream (BYD), which launched lower-cost electric cars in the EU last summer, recently became the world’s number one producer of hybrid and battery-only vehicles.

In November it was reported that BYD was planning to build its first European car factory in Hungary.

The Chinese power battery company Eve Energy also started construction of its gigafactory in Hungary last year, while another player, Sunwoda, said it would also invest there.

Vestager said the investment in Germany was “an important step for the electrification of transport in Europe while preserving the level playing field in the single market”.

The near €3bn in state aid earmarked for France will support the production of batteries, solar panels, wind turbines and heat pumps, along with key component and critical raw material supply chains, the EU said.

Last year the European Commission president, Ursula von der Leyen, announced an investigation into potential Chinese state subsidies into the automotive industry, bringing with it the threat of a trade war.

But during a visit to Beijing at the end of the year she tried to persuade Chinese officials that the European market would not remain open if it was found to compete unfairly with local enterprise.

Read more:
EU announces €4bn aid deal to back battery and green tech factories

0
FacebookTwitterGoogle +Pinterest
previous post
House Republican to file impeachment articles against Lloyd Austin
next post
Proposed development of Las Vegas-style Sphere in east London cancelled as plans are withdrawn

You may also like

Why is water hygiene important in the construction...

March 20, 2023

Ways to Fund Your Side Hustle Without Relying...

April 30, 2025

10 Reasons Why So Many Are Relocating to...

March 4, 2025

Enhancing Security with Cyber Threat Intelligence, Public Key...

May 7, 2025

Musk appoints himself CEO of Twitter as employees...

November 1, 2022

Exploring Nonprofit Innovation with Gon Erez

November 23, 2024

How Storage Boxes Support Large-Scale Catering and Event...

May 31, 2024

Construction skills ‘crisis’ as new figures reveal just...

June 22, 2023

Steel industry urges government to choose British in...

December 27, 2024

UK Car Insurance Costs Surge by over a...

April 8, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved