The European Commission has given thumbs up to the Poland’s €36 million investment aid to LG Chem for a new EV batteries plant in the Dolnoslaskie region stating that it is in line with EU State aid rules.
The €36 million investment aid will help LG Chem’s €325 million investment in a new vertically integrated manufacturing plant for the production of lithium-ion batteries in Poland.
lithium-ion batteries are used in EVs, the new plant is expected to supply batteries for more than 80 000 EVs per year in the European Economic Area (EEA).
The project is expected to create more than 700 direct jobs.
The European Commission said that it assessed the aid measure under the Guidelines on Regional State Aid for 2014-2020, which enable Member States to support economic development and employment in the EU’s less developed regions and to foster regional cohesion in the Single Market.
According to the Commission, without the public funding, the project would not have been carried out in Poland or any other EU country. Moreover, the aid is limited to the minimum necessary to trigger the investment in Poland rather than outside the EEA and the investment aid will contribute to job creation as well as to the economic development and to the competitiveness of a disadvantaged region.
The Commission said the EC concluded that the positive effects of the project on regional development clearly outweigh any distortion of competition brought about by the State aid.
Via New Europe