With the help of the European Union, Tesla’s 4680 battery cell plant at Giga Berlin is expected to receive a portion of the state aid for battery projects. The amount totals 2.9 billion euros ($3.5 billion).
Forty-two companies across the world will also be receiving the same state aid, reports Bloomberg. The European Commission expects this support will encourage private investments to triple, bringing the total amount spent at 12 billion euros ($14.59 billion).
Under the European Green Deal, Europe is pursuing many other environmental ambitions and is trying to achieve climate neutrality by 2050.
The European Commission’s vice president, Maros Sefcovic, has said that this project will cement Europe as a global hot spot for battery investments and help revolutionize the battery market.
The dedicated battery cell facility in Berlin will be producing Tesla’s custom-designed 4680 cells. It has an expected capacity of 100 GWh per year, but Tesla CEO Elon Musk has said that it could be increased to 250 GWh per year in the future.
Other automaker companies that expect to establish battery production facilities in the region include Stellantis, Volkswagen, and BMW. Other battery giants and Tesla suppliers have also planned to set up in Europe as well.