Tuesday 29 January 2019

EU clears €36m Polish aid for EV batteries plant

The European Commission has approved Poland’s €36 million (£31m) of public investment for a new battery plant for electric vehicles (EVs).

It will support South Korean firm LG Chem’s €325 million (£282m) investment in a new manufacturing facility for the production of lithium-ion batteries in the Dolnoślaskie region, an area eligible for regional aid.

The plant is expected to supply batteries for more than 80,000 EVs per year in the European Economic Area (EEA) and create more than 700 direct jobs.

The Commission found the project would not have been carried out in Poland or any other EU country without the public funding.

It stated: “The Commission concluded that the positive effects of the project on regional development clearly outweigh any distortion of competition brought about by the state aid.”