Home Technology Tesla withdraws state funding application for German battery plant

Tesla withdraws state funding application for German battery plant

Tesla withdraws state funding application for German battery plant

A view reveals the doorway to the development website of the long run Tesla Gigafactory in Gruenheide close to Berlin, Germany, August 12, 2021. REUTERS/Hannibal Hanschke/File Photo

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BERLIN, Nov 26 (Reuters) – Tesla (TSLA.O) has withdrawn its application for state funding for its deliberate battery manufacturing unit close to Berlin, the electrical car maker stated on Friday, including that development plans had been unchanged.

The European Union in January permitted a plan that included giving state support to Tesla, BMW (BMWG.DE) and others to assist manufacturing of electrical car batteries and assist the bloc to cut back imports from business chief China.

Tesla was expected to receive 1.14 billion euros ($1.28 billion) in EU funding for its battery plant in Gruenheide, Brandenburg below the plan, with a ultimate choice probably by the tip of the 12 months.

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The U.S. carmaker didn’t say why it had withdrawn its application for funding. The firm is itself investing 5 billion euros within the battery plant, in line with German economic system ministry estimates.

Meanwhile, development of a automotive manufacturing website alongside the battery plant, which Tesla has begun constructing below pre-approval permits whereas it awaits ultimate approval from the regional authorities, has made good progress in the previous few weeks, a spokesperson for the federal economic system ministry stated.

“Tesla has knowledgeable the Federal Ministry of Economics and the Brandenburg Ministry of Economics… it’s withdrawing its IPCEI application for state funding for the battery manufacturing unit in Grünheide,” a Tesla spokesperson stated, referring to European subsidies allotted to so-called ‘Important Projects of Common European Interest’.

“However, Tesla is sticking to its plans for the battery and recycling manufacturing unit within the Gigafactory Berlin-Brandenburg,” the spokesperson stated.

The electrical car maker additionally utilized in November 2020 for regional funding from Brandenburg, in line with the regional authorities’s web site.

A Brandenburg economic system ministry spokesperson stated this application had not been withdrawn.

The quantity Tesla utilized for is undisclosed, however investments price over 100 million euros are typically given 6.8% of their worth, the web site says.

The newest spherical of on-line consultations for the general public to specific environmental and different issues in regards to the automotive manufacturing unit and battery plant closed final week and Tesla CEO Elon Musk has stated he hopes to formally start manufacturing by the tip of the 12 months after which ramp up as shortly as attainable.

Musk has made his irritation for German legal guidelines and processes identified, saying in a letter to authorities in April that the nation’s complicated planning necessities had been at odds with the urgency wanted to combat local weather change. read more

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Reporting by Christian Kraemer, Nadine Schimroszik, Victoria Waldersee, modifying by Thomas Escritt and Susan Fenton

Our Standards: The Thomson Reuters Trust Principles.


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