Tesla Doesn’t Want $1 Billion in Subsidies to Build Battery Plant in Berlin

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The EU approved a plan that gives state support to Tesla and other companies that produce electric vehicle batteries. 

Tesla Withdraws Application for State Aid 

In January, the European Union approved a strategy that offers aid to Tesla and other companies. The support can help these companies in producing electric vehicle batteries. It’s hoping that the aid can lower imports from China. 

Under the plan, Tesla will receive 1.14 billion euros for its battery plant in Gruenheide, Brandenburg. The European Battery Innovation Project supports the industry during its move away from fossil fuels. 

Tesla plans to invest billions in euros in its battery cell factory near Berlin. This will complement its electric car factory, which is nearly finished and it is situated at the same location as the battery cell factory. 

The high investment volume indicates that the said electric car company may receive subsidies of 1.14 billion euros. In a Business Insider report, Testa may receive at least 1 billion euros in public funding for creating its battery cell factory near Berlin. 

However, in the recent report, Tesla is withdrawing its IPCEI application for state funding. Musk tweeted:

“It has always been Tesla’s view that all subsidies should be eliminated, but that must include the massive subsidies for oil & gas. For some reason, governments don’t want to do that.”

In the last few weeks, Tesla is making good progress in constructing its car production site alongside the battery plant. The electric car maker applied for funding in November 2020. This funding hasn’t been withdrawn. 

The amount of money that Tesla applied for has not been disclosed. However, it may get 6.8% of the value invested considering that it’s spending over 100 million euros. 

The public was allowed to express their environmental and other concerns about Tesla’s car factory and battery plant through online consultations. The latest round of online discussions ended last week. Elon Musk said he’s hoping that his company can start producing cars by the end of the year. 

Tesla’s gigafactory was supposed to open earlier in 2021. However, Musk blames German bureaucratic hurdles for the delay. The country’s laws and processes were at odds with the urgency to fight climate change, according to Musk. 

But how environment-friendly are electric cars? 

Government and car makers are promoting electric cars as the key to curbing oil use and fighting against climate change. Many carmakers are now supporting this initiative. Some of them announced that they’re going to stop selling gasoline-powered cars. 

As these cars are going mainstream, they are facing one question. That is, are electric cars really environment-friendly? 

Experts do think and agree that plug-in cars are more environmentally friendly than traditional vehicles. However, they are without environmental impacts. Their being “green” depends on how they are manufactured and charged up. 

It means that consumers need to consider how much emissions are involved in making these cars compared to the emissions in producing diesel fuel. Then, consumers should also examine the gas conventional cars are burning and the electricity to charge these electric cars comes from.

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Author: Jane Danes

Jane has a lifelong passion for writing. As a blogger, she loves writing breaking technology news and top headlines about gadgets, content marketing and online entrepreneurship and all things about social media. She also has a slight addiction to pizza and coffee.

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