The European Union (EU) on Monday approved state aid of 900 million euros granted by Berlin to battery maker Northvolt, which will allow the Swedish company to build a battery factory in northern Germany.
Northvolt had previously announced that it might choose the United States rather than Germany as the location for its next plant. At the time, Northvolt wanted countries to support the creation of more factories in Europe.
The German government had promised to finance the construction of the factory in December, but approval from the European Commission was also needed. Authorization was granted on Monday and will be the first grant of its kind, the aim of which is to increase Europe’s competitiveness in the field of climate-friendly technologies.
The EU fears that companies will move to the US to take advantage of subsidies there. That’s why Brussels has launched a new mechanism that allows companies to ask governments for more money than they have been offered bigger subsidies elsewhere.
The United States is also trying to develop the country’s green industry. Joe Biden has already announced the Inflation Reduction Act (IRA) in 2022. In this context, the United States will invest $370 billion in climate and energy programs.
2024-01-08 13:20:00
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