EU approves financing a factory to produce lithium batteries in ‎Germany

European Competition Commissioner Margrethe Weisteger announced that the European Executive Authority had approved that a Swedish company producing lithium-ion batteries would receive German government aid worth 902 million euros to build a factory to produce electric car batteries in northern Germany.

The European Commissioner said in a press conference, accompanied by German Deputy Prime Minister Robert Habeck, that the station will accelerate the green transformation of the 27-nation bloc and reduce dependence on fuel, and that German aid is necessary to build the station.

The German aid consists of a direct grant worth 700 million euros and a guarantee worth 202 million euros.

The capacity of the factory, which will be established in the city of Hyde, will reach 60 gigawatt hours, which translates from 800,000 to 1 million electric cars annually, depending on the size of the battery, and its production will begin in 2026 to reach its full capacity in 2029.