In a race to secure subsidies and bolster the green industry, two major electric vehicle (EV) battery manufacturers have announced plans to invest a total of 10 billion euros ($11 billion) in European facilities – thanks to the relaxation of state aid regulations in Europe.
One of the investors, Northvolt, a Sweden EV battery manufacturer is in the process of finalizing the chosen site for its factory in Heide, northern Germany pending the approval of subsidies. Sources close to the matter told Reuters that the subsidies are estimated to exceed 600 million euros.
Meanwhile, Taiwan's ProLogium also unveiled plans for a new plant in the city of Dunkirk, France following attractive incentives and competitive power prices from the France government, in what is part of broader plans to shift its base overseas as a result of the brewing US-China tension.
If truth be told: Europe is striving to reduce its reliance on Asian countries for EV batteries even though the region still heavily depends on Asia for the sourcing and processing of vital raw materials such as lithium, cobalt, and manganese.
Interestingly, Europe's ambitions for self-reliance extend beyond the EV landscape. The region has been proactively courting semiconductor manufacturers, including industry giant TMSC, to establish new plants within its borders.
This strategic move is driven by the pressing need to secure chip supplies, addressing the global chip shortage that has been exacerbated by the disruptive effects of the COVID-19 pandemic on supply chains.