European Commission to Hand Out €1.8 Billion for Car Battery Production

The European Commission plans to allocate €1.8 billion to create a secure and competitive supply chain for battery raw materials.

The decision aims to support the growth of the European automotive industry, the European Commissioner for Sustainable Transport, Apostolos Tzitzikostas, announced on Wednesday.

The announcement is part of the automotive sector action plan approved by the Commission's college.

Commission President Ursula von der Leyen had already hinted at the action plan on Monday. She mentioned that the Commission would explore direct support for EU battery producers and gradually introduce European standards for battery cells and components.

On March 5, Tzitzikostas elaborated that €1.8 billion from the innovation fund would be allocated to the initiative.

"With a focus on clean mobility, digitalisation, and supply chain resilience, the plan will provide €1.8 billion to support the development of a secure and competitive supply chain for battery raw materials and €1 billion for connected and autonomous vehicles and batteries," a press release read.

European car manufacturers would have more time to meet EU CO2 emission standards, von der Leyen also revealed on Monday. They will now have three years instead of one to comply with the stricter average fleet emission target of 93.6 grams of CO2 per kilometre, effective this year.

"If companies are underperforming in 2025, they will need to step up their efforts over the next two years. Companies exceeding their targets this year can take a more relaxed approach over the same period," Tzitzikostas stated on Wednesday.

He reiterated that the Commission remains committed to its 2035 goals, which include banning the sale of combustion engine vehicles by then.

Additionally, Tzitzikostas announced that the Commission aims to review the phase-out of combustion engines by the end of this year, rather than early next year, due to the urgency.

Von der Leyen had previously stated that "complete technological neutrality" would be a fundamental principle during this review.

Source: The Brussels Times (Website)