Tesla will help Germany oust China
Germany will finance Tesla to help the EU reduce imports from China and push its manufacturers into the electric car market, Euronews writes.
The company's money will be allocated for the construction of a battery production plant near Berlin. According to the ministry's estimates, Tesla plans to invest five billion euros ($5.9 billion) in the factory. Tesla's large investment volume means that the company can count on government subsidies of 1.14 billion euros ($1.35 billion).
At the end of last year, it became known about Tesla's plans to build the world's largest battery factory for electric vehicles in Germany. The battery plant should become part of a factory for the production of electric cars, designed to produce 500 thousand Tesla Model 3 and Tesla Model Y electric vehicles per year. If the project is implemented, the plant will become the only one for the manufacturer, where not only the cars themselves will be manufactured, but also the batteries for them.
Tesla began preparations for the construction of a battery factory on February 13, 2020, and initially planned to launch production in July of this year. However, the electric car company could not get a construction permit in time, including from local environmentalists. In August, the head of the company, Elon Musk, postponed the opening of the factory to October, and recently postponed it until the end of the year, accusing German officials of delaying the approval of subsidies.
The European Union in January approved a financial assistance plan for Tesla, BMW, and other automakers to expand battery production on their territory and gain independence from imports from China. The project, called European Battery Innovation, is worth 2.9 billion euros (3.4 billion dollars) includes more than 40 companies. In addition, Europe has taken care of the creation of the domestic battery industry. Economy Minister Peter Altmaier said in early September that the automaker Opel will receive a government grant of 437 million euros for the construction of a plant in the city of Kaiserslautern.
TAGS: TESLA, GERMANY, CHINA