Tesla withdraws government funding request for German battery factory – Ministry of Economy

The logo of car manufacturer Tesla appears at a branch office in Bern, Switzerland, October 28, 2020. REUTERS/Arnd Wegmann/File Photo

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Today, Friday, a spokesman for the Ministry of Economy said that Tesla has withdrawn its application for government funding for its planned battery plant in Brandenburg, just outside Berlin.

“Tesla continues to stick to its plans for the battery plant at the Gigafactory Berlin-Brandenburg, but will do without IPCEI government funding,” the spokesperson said, referring to European subsidies for so-called “significant projects of common European interest.”

Tesla was not immediately available for comment.

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The European Union in January approved a plan that includes government assistance to Tesla and BMW (BMWG.DE) and others to support electric car battery production and help the bloc reduce imports from industry-leading China.

it was tesla It is expected to receive 1.14 billion euros ($1.28 billion) in EU funding under the plan, with a final decision likely by the end of the year.

The electric car maker also applied in November 2020 for regional financing from Brandenburg, according to the regional government website.

A spokesman for the Brandenburg State Economy Ministry said that request had not been withdrawn.

The amount Tesla made has not been disclosed, but investments worth more than 100 million euros are generally awarded 6.8% of their value, the site says. The company itself is investing 5 billion euros in the battery plant, according to estimates by the Ministry of Economy.

Construction on the factory site, where Tesla has begun construction under pre-approval permits while awaiting final approval from the regional government, has made good progress in the past few weeks, the spokesperson said.

The latest round of online consultations closed to the public expressing their concerns about the site last week, and Musk said he hopes to have production officially begin by the end of the year.

(1 dollar = 0.8876 euros)

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(Covering) Written by Christian Kremer, Nadine Chemrosek, Victoria Waldrusy; Editing by Thomas Escritt

Our criteria: Thomson Reuters Trust Principles.

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