The American electric vehicle and clean energy company Tesla is up to receive at least $1.2 billion in public funding from Germany for setting up a battery cell factory near Berlin, as per a recent report.
Last week the European Union had approved a plan that includes giving state aid to automobile manufacturers like Tesla, BMW and others to encourage the production of electric vehicle batteries and help the bloc cut imports from industry leader China.
The $3.5 billion worth European Battery Innovation project approved by the EU includes more than 40 companies, in line with the launch of the European Battery Alliance in 2017 to support the industry during the shift away from fossil fuels.
As per the German government sources, Tesla would get subsidies of more than $1.2 billion from the federal government and the regional state of Brandenburg, where the Tesla factory is being under construction. Meanwhile, a spokeswoman for Germany’s economy ministry had stated that the amount of federal support Tesla would get is not yet clear.
Last week the ministry stated that Berlin had accumulated around $1.2 billion for the initial battery cell alliance and has planned to support the second project with another $1.9 billion.
When requested to respond to the news a spokeswoman for the economy ministry in the state of Brandenburg declined to comment. Tesla was not immediately available for comment.
The federal government is expected to shoulder the major portion of the subsidies with Brandenburg likely to contribute less than 10 percent. The final decision on the exact subsidies for Tesla will probably take several more weeks.