Germany is likely to decide by the end of the year how much government assistance US electric vehicle maker Tesla will receive for its planned battery cell plant near Berlin, an economy ministry spokesman said Sunday.

The European Union in January approved a plan that includes government assistance to Tesla, BMW and others to support the production of batteries for electric vehicles and help the block reduce imports from China, an industry leader. The EU approval of the €2.9 billion (US $3.45 billion) European Battery Innovation project, involving more than 40 companies, follows the launch of the European Battery Union in 2017 to support the industry in its transition from fossil fuels.

The German Economy Ministry estimates that Tesla plans to invest 5 billion euros in its battery plant in Grünheide, near Berlin, to complement its nearly finished electric vehicle plant at the same location. The unusually high investment volume means the American carmaker can count on German government subsidies of €1.14 billion, the Tagesspiegel newspaper reported Sunday. This is consistent with a February Business Insider report, which said Tesla will receive at least €1 billion in government funding from Germany to open a battery factory near Berlin.

Source: World-Signals News