European Union institutions approved on Monday the plan to invest 3.2 billion euros from seven member states with the aim of developing and producing modern and advanced batteries.
The decision is part of a German-French-led initiative to prepare Europe for an electric car emergency as diesel and gasoline vehicles are expected to withdraw from the market gradually due to global warming concerns.
The car industry in Europe employs over ten million people and the European Union is deeply concerned about Europe’s independence in the battery sector due to competition from Asia.
Batteries make up 40 percent of the price of an electric car and are currently manufactured by South Korean, Chinese and Japanese companies.
Germany, France, Italy, Poland, Belgium, Sweden and Finland will contribute € 3.2 billion. The fund will build a consortium of 17 companies that will generate five billion euros through private investment.
Among the companies involved in the project are the German carmaker, BMW, and the chemical manufacturing plant, BASF, writes “France24”.