The European Union (EU) approved on the 8th to subsidize Swedish electric vehicle battery manufacturer Northvolt to build a plant in Germany by 900 million euros to prevent it from being sucked into the United States to build a factory.
Agence France-Presse reported that Margrethe Vestager, the European Union's executive commissioner in charge of market competition, said the amount was the first grant issued last year under the system created last year to counter the Inflation Reduction Act, which provides huge subsidies to Washington.
Versthecil said: "Germany is providing the Northvolt Inflation Reduction Act with the subsidies it should have received. She said that if the EU had not provided subsidies, Northvolt's investment would have spanned the Atlantic.
German Vice Chancellor Robert Habeck dismissed concerns that Germany's economic power could make it impossible for other EU countries to compete, and said the main competition was between Europe and other world powers.
"Imagine that we could be completely dependent on China or the United States for renewable energy production, which is a threat to the future," Haberk said during a visit to Brussels. So this investment is an investment in the security of our economy. ”
The European Union is working to stop the flow of key green technology investments to the United States through the Inflation Reduction Act. In addition to the $370 billion investment, the bill also includes tax breaks for U.S.-made electric vehicles and batteries.
The European Union passed a provision last year that allows member states to provide subsidies comparable to those of other countries to prevent green technology companies from leaving Europe.
Header image**: northvolt).