Tesla declines Germany government grant in the billions for their planned battery gigafactory.
Tesla is foregoing possible government funding in the billions for the planned battery production in its Gigafactory in Grünheide near Berlin.
The US electric car manufacturer Tesla surprisingly waived a possible government subsidy in the billions for the planned battery production in Grünheide near Berlin. The Federal Ministry of Economics and Tesla announced this on Friday at the request of the German Press Agency. The company did not give any reasons for this. According to Tesla, however, the battery factory is still being planned – new types of batteries are to be manufactured on the site of the car factory.
Tesla had informed the Federal Ministry of Economics and the Brandenburg Ministry of Economics that it no longer wanted to pursue participation in the second major European project for battery cell production (EuBatIn), the car manufacturer said. That is why the company withdrew the application for state funding for an IPCEI for the battery factory in Grünheide. “Tesla, however, is sticking to its plans for the battery and recycling factory in the Gigafactory Berlin-Brandenburg, but is foregoing government IPCEI funding.”
The Federal Ministry of Economics supports large-scale battery cell innovation projects that are implemented as “Important Projects of Common European Interest” (IPCEI). So far, Europe has lagged behind Asia in particular in the production of battery cells for e-cars. The ministry announced on Friday: “The government funds not used by Tesla are now available for other projects.” The new federal government would have to decide on the specific use of the funds.
A maximum of 1.1 billion euros
The aid for the project in Grünheide had been approved by the EU Commission. According to dpa information, the final amount of funding for Tesla has not yet been determined. The EU Commission had approved a maximum amount of around 1.1 billion euros, but this maximum commission amount should not have corresponded one to one to the sum of the funding decision.
Prerequisites must be met for such funding: The project must, for example, make an important contribution to EU goals such as the research area and climate policy, the benefits must have effects on the European economy, and the research and development projects must be of a significantly innovative nature .
Tesla would not only have received federal funds as part of the funding, but also a state share from Brandenburg. The Landtag’s economic committee had already approved a majority of the state’s funding of 120 million euros from a future fund. Left parliamentary group leader Sebastian Walter says it is not about a waiver, but about a missing funding criterion. “We kept asking whether Tesla also had research and development,” he said on Friday. The Ministry of Economic Affairs could not give an answer in the Economic Committee.
Further funding
Tesla not only wants to build a car factory in Grünheide near Berlin, but also build new types of batteries. The project is well advanced. Tesla builds at its own risk and with early approvals because the approval from the state of Brandenburg is still pending. Tesla boss Elon Musk is aiming for the production of his first car factory in Europe to start this year. However, it was not until Monday that another online discussion by critics of the project ended and is still being evaluated. In Brandenburg, it is considered likely that Tesla will get the green light – but conditions are expected.
The project is considered to be one of the most important industrial projects in East Germany. Brandenburg’s Minister of Economic Affairs, Jörg Steinbach (SPD), who is in close contact with Musk, said of the waiver: “This does not change Tesla’s commitment to the Grünheide location.” And further: “Tesla’s decision to build a state-of-the-art battery cell factory in Brandenburg leads to additional added value with jobs and structural developments and is a gain for the state.”
Tesla can hope for further funding: The application for GRW funding – that is the federal-state joint task to improve the regional economic structure – is still being processed, according to the Ministry of Economics in Potsdam. What is the sum? That is open: “The process is ongoing, so we cannot provide any information on the amount of funding before the process is completed.” (dpa / os)
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