European Commission Calls for Additional EU Funds for EV Battery Production

BRUSSELS (Reuters) – The European Commission called on Tuesday for an additional 1 billion euros ($1.1 billion) of EU funds to support electric vehicle battery cell manufacturing, as the EV sector shows signs of pressure.

This funding would be part of an overall 4.6 billion euros set aside from the EU's Innovation Fund to boost net zero technologies and renewable hydrogen within the bloc, according to the Commission.

European electric vehicle makers face fierce competition from Asia and have experienced demand falling short of expectations, adversely affecting jobs in the region.

EU Commissioner Wopke Hoekstra stated, "As promised, we're already delivering for European citizens and businesses. We are investing 4.6 billion euros to support cutting-edge European projects in net-zero technologies, electric vehicle batteries, and renewable hydrogen."

European carmakers are grappling with weak demand and a slower-than-expected transition to electric vehicles while also trying to counter competition from China. The European Union has proposed raising tariffs on Chinese-built EVs to combat what it deems unfair Chinese subsidies.

On Tuesday, Swiss automotive supplier Feintool announced it would close one of its sites in Germany and cut its workforce by up to 200 people due to low demand for electric vehicles and uncertainty regarding the shift to renewable energy.

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