The rise of the electric vehicle (EV) has brought with it a new era in battery development, and while the market has already grown immensely, it’s only just getting started.
The European Union (EU) recently granted 2.9 billion euros ($3.5 billion USD) in state aid to be used in battery production for EV companies, as reported by Bloomberg. The support will be directed across a number of countries, to a total of 42 companies, including Tesla, BMW, Stellantis NV (Fiat Chrysler), and Northvolt AB, to name a few.
The #EU paved the way for companies like @Tesla & @BMW to get about €2.9 billion of state aid for #battery projects intended to bolster the bloc's position in the race to produce more #EVs.
@business @BloombergNEF @EnergyMetals https://t.co/RC3QN3KXh7 pic.twitter.com/cR6JvYoGcI
— Mitchell Smith (@MitchSmithVanc) January 26, 2021
Europe’s battery market is expected to reach 250 billion euros (roughly $303 billion USD) as a result of the sweeping economic overhaul, which includes plans to cut transport emissions and reach climate neutrality by 2050.
The EU also hopes to reduce reliance on Asian battery makers like LG Chem LTD (South Korea), Panasonic (Japan), and Contemporary Amperex Technology (China), which altogether currently produce the vast majority of the world’s EV batteries.
European Commission Vice President Maros Sefcovic hopes the move will claim a spot for Europe in the world’s competitive battery market.
Sefcovic said, “Europe will cement in this way its position as a global hot spot for battery investment.” He continued, “This pan-European project will help revolutionize the battery market.”
In any case, now is the time for governments to start incentivizing companies and individuals alike to buy electric, to help zero-emissions vehicles become the norm.
