The Federal Ministry of Economics and Tesla announced this on Friday at the request of the German Press Agency. The company did not give any reason for this. According to Tesla, however, there are still plans for a battery factory – new types of batteries to be manufactured at the site of the car factory.
Tesla had informed the Federal Ministry of Economics and the Brandenburg Ministry of Economics that it no longer wanted to participate in the second major European project for battery cell production (EuBatIn), the carmaker said. That is why the company withdrew the application for state funding for the IPCEI for the battery factory in Grünheide. “However, Tesla Gigafactory is sticking to its plans for a battery and recycling factory in Berlin-Brandenburg, but is waiving the state’s IPCEI funding.”
The Federal Ministry of Economics supports large-scale battery cell innovation projects that are implemented as “Important Projects of Common European Interest” (IPCEI). So far, Europe has lagged behind Asia, especially in the production of battery cells for e-cars. The ministry announced on Friday: “Government funds not used by Tesla are now available for other projects.” The new federal government would have to decide on the specific use of the money.
Aid for the project in Grunheide was approved by the European Union Commission. According to DPA information, the final amount of funding for Tesla has not yet been decided. The EU Commission approved a maximum amount of approximately EUR 1.1 billion, but this maximum commission structure should not have been consistent with the one to one sum of funding decision.
Prerequisites for such funding must be met: for example, the project must make a significant contribution to EU goals such as the research sector and climate policy, the benefits must have an impact on the European economy, and research and development projects Must have a significant innovative nature.
Tesla will receive not only federal funding as part of the funding, but also a state share from Brandenburg. The economic committee of the state’s parliament had already approved most of the state’s 120 million euro funding from future funds. Left parliamentary group leader Sebastian Walter says it is not about exemptions, but about a missing funding criterion. “We kept asking if Tesla even had research and development,” he said on Friday. The Ministry of Economic Affairs could not respond to the Economic Committee.
Tesla not only wants to build a car factory in Grunheide near Berlin, but also wants to make a new type of battery. The project is well advanced. Tesla manufactures at its own risk and with early approval as approval from the state of Brandenburg is still pending. Tesla boss Elon Musk is aiming to start production at his first car factory in Europe this year. However, it was not until Monday that another online discussion by critics of the project ended and is still being evaluated. In Brandenburg, it’s likely Tesla will get the green light – but conditions are expected.
The project is considered one of the most important industrial projects in East Germany. Brandenburg’s minister of economic affairs, Jörg Steinbach (SPD), who is in close contact with Musk, said of the exemption: “It does not change anything in Tesla’s commitment to the Grunheide location.” And further: “Tesla’s decision to set up a state-of-the-art battery cell factory in Brandenburg leads to additional added value with jobs and structural growth and is a win-win for the state.”
Tesla can expect further funding: According to the Ministry of Economics in Potsdam, applications for GRW funding – which is a federal-state joint act to reform the regional economic structure – are still being processed. What is the amount? It is open: “The process is ongoing, so we cannot provide any information about the amount of money before the process is completed.”
Tesla shares fell 3.05 percent to $1,081.92 in trading on the Nasdaq.
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