European Union offers one billion euros in grants for EV battery production to reduce dependance on China

European Union offers one billion euros in grants for EV battery production to reduce dependance on China

The European Union (EU) has earmarked an additional one billion euros (about RM4.7 billion) in grants for electric vehicle (EV) battery cell manufacturing, Bloomberg reports.

The latest move by the EU aims to encourage domestic production and build a strong supply chain, all of which helps reduce the bloc’s reliance on components sourced from China, including cathodes and anodes used in battery production. Any funding will be tied to stringent sourcing criteria that support companies within the EU, and new patents from funded projects must be registered within its member states to retain critical intellectual property.

“The batteries call and hydrogen bank auction will also include specific resilience criteria to protect Europe against dependency on a single supplier,” said Teresa Ribera, the European Commission’s executive vice president for a clean, just and competitive transition.

Said hydrogen bank auction totals 1.2 billion euros (RM5.6 billion) and requires projects to limit the sourcing of Chinese electrolyser stacks, which are key components in hydrogen production, to no more than 25% of their total capacity. Meanwhile, another 2.4 billion euros (RM11.2 billion) set aside for net-zero technologies will be prioritised for projects that minimise the use of raw materials from non-European suppliers.

China is a big player in the EV supply chain, with BloombergNEF estimating lithium-ion battery demand to be at around 950 GWh in 2023. “Global battery manufacturing capacity was more than twice that, at close to 2,600 GWh. China’s battery production in 2023 alone was similar to global demand,” the research house reported.

Looking to sell your car? Sell it with Carro.

Certified Pre-Owned - 1 Year Warranty

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard's strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • EV Car Mafia on Dec 06, 2024 at 6:25 pm

    They will still need China for the raw materials. dont they?

    Like or Dislike: Thumb up 4 Thumb down 0
  • Make your covidian Ringgit count on Dec 06, 2024 at 8:20 pm

    Blardy hypocritical EU imposed tariffs on China EVs saying Xi Xin Ping gave preferential treatment to Chinese auto makers.
    Now ,what is the f…ing grant for? Pathetic,disgusting,recalcitrant kwai lohs preaching fairness while they do the opposite.
    Dont ever believe those idiotic morons.Boycott those EU autos if u r still boycotting Starbucks.(which is counterproductive locally)

    Like or Dislike: Thumb up 6 Thumb down 2
  • ROTI CANAI on Dec 06, 2024 at 11:57 pm

    Build ur ev using apa….rapeseed oil? Beer hops?

    Like or Dislike: Thumb up 5 Thumb down 0
  • Typical western hypocrisy….

    Like or Dislike: Thumb up 1 Thumb down 0
  • ashok on Dec 08, 2024 at 10:00 am

    do you call this SUBSIDY ???

    Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required