The German government is likely to decide by the end of the year how much government assistance the American electric car maker Tesla will receive in connection with the construction of a battery cell plant near Berlin.
The European Union in January approved a plan that provides government assistance to Tesla, BMW and other manufacturers to support their efforts to build local battery production for electric vehicles and reduce imports from China, an industry leader. The € 2.9 billion European Battery Innovation project covers more than 40 companies.
The German Economy Ministry estimates that Tesla plans to invest 5 billion euros in a battery factory in Grünheide, near Berlin, which will complement Tesla’s almost-built electric vehicle factory, which is already nearly built on the same site.
With this volume of investment, the American manufacturer can count on government subsidies in the amount of 1.14 billion euros. This assessment was published by the Tagesspiegel newspaper. She confirmed the data of the resource Business Insider, which announced in February that Tesla will receive at least 1 billion euros from Germany in government subsidies for the construction of a plant for the production of batteries.
A spokesman for the Economy Ministry said the final amount has not yet been determined. Negotiations between the automaker and the European Commission are ongoing. He added that the final decision is likely to be made before the end of the year.
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