The European Union cleared 42 companies, including Tesla Inc. and BMW AG, to get $3.5 billion state aid for battery projects, according to Bloomberg. The aid is expected to strengthen the bloc’s position in its race to produce more electric vehicles.
- The European Commission will support more than three times as much private investment, bringing the total spent to about 12 billion euros.
- The state aid is part of the EU’s plans to cut greenhouse gas emissions under the European Green Deal to reach climate neutrality by 2050.
- As part of the Green Deal, the EU aims to achieve its 2030 emissions-reduction target to at least 55% from 1990 levels, compared with the existing goal of 40% cut.
- EU also wants to reduce its reliance on EV batteries from Asian producers, with the continental battery market expected to reach 250 billion euros by 2025.
- Europe is projected to make 1.9 million sales of plug-in hybrid and battery-electric vehicles this year, topping China and almost quadrupling the total expected in North America.
Tesla and BMW stocks are currently gaining. TSLA: NASDAQ is up 0.46%, BMW: ETR is up 3.75%
