EU approves more state aid to boost car batteries industry

The European Union has approved 2.9 billion euros in subsidies from 12 member countries for a second pan-European project to develop the electric battery industry and move away from its reliance on Asian imports.

The EU's executive commission had already cleared a 3.2 billion-euro plan subsidized by seven countries in December 2019 to support research and innovation in a key sector where Europe is lagging behind Asian competitors.

The EU, which expects that demand for batteries will grow quickly in the coming years, said Tuesday that the latest public funding is expected to unlock an extra 9 billion euros in private investment.

The commission said the project - involving Austria, Belgium, Croatia, Finland, France, Germany, Greece, Italy, Poland, Slovakia, Spain and Sweden - will cover the whole production chain, from mineral extraction to design, battery...