The European Commission has called for an additional €1 billion in EU funds to bolster electric vehicle (EV) battery cell manufacturing, as the sector faces mounting pressure. This proposal is part of a broader €4.6 billion allocation from the EU’s Innovation Fund aimed at supporting net-zero technologies and renewable hydrogen projects within the bloc.
The call for additional funds comes as European EV manufacturers grapple with heightened competition, particularly from Asia, and slower-than-expected demand for electric vehicles. These challenges have affected job stability across the region. EU Commissioner Wopke Hoekstra emphasized the need for investment in critical sectors, stating, “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 vehicle batteries, and renewable hydrogen.”
European carmakers are not only contending with weak demand but also trying to combat growing competition from Chinese manufacturers. To address these issues, the European Union has proposed increasing tariffs on Chinese-made EVs, citing concerns over unfair subsidies provided by China.
In a related development, Swiss automotive supplier Feintool announced it would close one of its German sites, resulting in the potential loss of up to 200 jobs. The company cited weak demand for electric vehicles and uncertainty regarding the transition to renewable energy as key factors influencing the decision.
