The European Commission announced on Monday its approval of state aid schemes from France and Germany, as part of the bloc's efforts to advance the transition towards a net-zero economy.
The French state aid investment, totaling 2.9 billion euros (about 3.18 billion U.S. dollars), is geared towards leveraging tax credits to support companies planning investment in the production of solar panels, batteries, wind turbines and heat pumps, as well as key components and critical materials needed for these products.
Germany's 902-million-euro aid is earmarked for Northvolt, a Swedish battery producer, to construct a plant in the city of Heide, and the facility will focus on the production of batteries for electric vehicles.
Production is set to commence in 2026, with full capacity expected by 2029, as stated by the Commission.
"The aid will enable Northvolt's investment in a gigafactory to produce battery cells for electric vehicles in Europe instead of the United States," said Margrethe Vestager, the Commission's executive vice-president, who is responsible for competition policy.
Editor:Galia
