On December 6, the European Commission proposed the above plan as part of a potential agreement with the United Kingdom. On the same day, the EU suggested a three-year tariff deferment for electric cars destined for the UK. According to the previous agreement, starting from January 1 next year, a 10% tariff would be imposed on electric vehicle products flowing between the UK and the EU if their value from the respective region is below 45%.
Maroš Šefčovič, Vice President of the European Commission, stated, "By providing legal certainty for applicable rules and unprecedented financial support for European sustainable battery producers, we will enhance the industry's competitive advantage through a strong value chain for batteries and electric vehicles."
Reports indicate that this 3 billion euros will come from the EU's Innovation Fund, with funding derived from the sale of carbon emission permits. The subsidy for battery manufacturers will last until the end of 2026, directing funds towards the most efficient and sustainable battery products.
An EU official mentioned, "The problem we are facing now is that we don't have enough batteries, or rather, we don't have enough chemicals. We hope these batteries will be produced in the EU or the UK, but currently, it's not the case." The EU's goal is for Europe to meet 70% of the industry's procurement needs.
Renault, Mercedes-Benz, and other automakers have welcomed the new subsidy policy. Swedish battery manufacturer Northvolt also stated, "If used properly, this subsidy can further drive the competition for sustainable and recyclable batteries, providing a competitive advantage for Europe and moving towards achieving the goals of the Paris Agreement."
Two European diplomats indicated that the battery subsidy was a necessary condition for France to agree to postpone tariff imposition. France had warned that approving a tariff delay could set a precedent, and the UK might take advantage of the opportunity to request other modifications to the agreement.
Currently, several battery factories are being planned in France, including the battery "gigafactory" that Eneris plans to build in Dunkirk in northern France. The factory will receive a 5.2 billion euros investment, is expected to create 3,000 jobs, and will receive 1.5 billion euros in financial support from the French government.
