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European Commission favours more EU funds for electric vehicles sector
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BRUSSELS (Reuters) – The European Commission called on Tuesday for an additional 1 billion euros ($1.1 billion) of EU funds to be made available to support
BRUSSELS (Reuters) – The European Commission called on Tuesday for an additional 1 billion euros ($1.1 billion) of EU funds to be made available to support electric vehicle battery cell manufacturing, as the EV sector shows signs of pressure.
This would form part of an overall 4.6 billion euros set aside from the EU’s Innovation Fund to boost net zero technologies and renewable hydrogen in the bloc, the Commission said.
European electric vehicle makers face fierce competition from Asia in particular and demand has lagged expectations, which in turn has hit jobs in the region.
“As promised, we’re already delivering for European citizens and businesses. We are investing 4.6 billion euros to back cutting-edge European projects in net-zero technologies, electric vehicles batteries and renewable hydrogen,” EU Commissioner Wopke Hoekstra said in a statement.
European carmakers have been struggling with weak demand and a slower-than-expected shift over to electric vehicles, while also trying to fend off competition from China. The European Union has proposed raising tariffs on Chinese-built EVs to counter what it says are unfair Chinese subsidies.
On Tuesday, Swiss automotive supplier Feintool said it would close one of its sites in Germany and cut its workforce by as many as 200 people due to weakness in demand for electric vehicles and uncertainty over the shift to renewable energy.
($1 = 0.9506 euros)
(Reporting by Sudip Kar-Gupta; Editing by Susan Fenton)
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the day-to-day operations of the EU.
Electric vehicles (EVs) are automobiles that are powered by electric motors instead of traditional internal combustion engines, using electricity stored in batteries.
Renewable energy is energy derived from natural sources that are replenished at a faster rate than they are consumed, such as solar, wind, and hydroelectric power.
Battery cell manufacturing involves the production of individual battery cells that are used in various applications, including electric vehicles, to store and provide energy.
The Innovation Fund is a financial instrument established by the European Union to support the development and deployment of innovative low-carbon technologies.
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