Brussels approves 900 mn euro German aid for battery plant in EU

The EU on Monday approved Germany's 900-million-euro subsidy for electric vehicle battery firm Northvolt to build a plant in Germany that might have otherwise been lured to the United States.

Margrethe Vestager, EU competition chief said "Matching aid is a new feature that we are using. We have it in the temporary crisis and transition framework in order to make sure that if companies are offered aid in other jurisdictions, then if a member state is willing that they can match the aid in order for the investment to take place in Europe, for the technology to be developed in Europe, for the jobs to be situated in Europe."

The factory to be built in Germany's northern state and will be the first constructed by Sweden's Northvolt outside its home country. The project aims to have a capacity to produce batteries for around one million electric vehicles a year in 2029.