The European Commission has announced it will be pumping more cash into electric vehicle battery technology despite losing hundreds of millions on the now-bankrupt Northvolt project.
Brussels is believed to have lost €300 million over the failed green project that was unable to make itself profitable despite support from centre-left politicians.
In a December 3 press release, the EC confirmed that it was injecting a further €1.2 billion into the sector, with €1 billion coming from the body itself while a further €200 million was being sourced from a joint venture between the EC and the European Investment Bank (EIB).
“Battery production is a priority for the clean energy transition in the transport and power sectors and beyond,” EC climate commissioner Wopke Hoekstra said regarding the announcement.
“We are combining different financial instruments to target our support in the most efficient way and maximise private investment.
“The partnership with the EIB will help EU businesses and innovators to reap the benefits of innovative net-zero technologies,” he added.
The cash will be part of a broader, €4.6 billion investment into the “green” sector aimed at “innovative decarbonisation”, with Brussels insisting that it will achieve Net Zero by 2050, regardless of the consequences.
It also comes shortly after Europe’s former largest EV battery manufacturer, Northvolt, went bust late in November.
The EC confirmed it had backed $313 million (€297 million) worth of unpaid EIB loans to the company at the time it went under.
A spokesman at the time insisted to Brussels Signal that the EC would continue to invest in green tech despite the failure.
The bankruptcy of Swedish battery developer and manufacturer Northvolt is set to cost the European taxpayer a hefty sum. https://t.co/4PRhvG5ExG
— Brussels Signal (@brusselssignal) November 26, 2024
