London Daily

Focus on the big picture.
Monday, Aug 31, 2026

Decision to give Tesla €1 billion in subsidies expected at end of 2021

Decision to give Tesla €1 billion in subsidies expected at end of 2021

The US electric carmaker will have to wait to see if it will benefit from state subsidies in Germany for its gigafactory near Berlin.

Germany will probably decide by the end of the year how much state aid US electric vehicle maker Tesla will receive for its planned battery cell factory near Berlin, an economy ministry spokesperson said on Sunday.

The European Union in January approved a plan that includes giving state aid to Tesla, BMW, and others to support the production of electric vehicle batteries and help the bloc to reduce imports from industry leader China.

The EU's approval of the €2.9 billion European Battery Innovation project, which includes more than 40 companies, follows the launch in 2017 of the European Battery Alliance to support the industry during the shift away from fossil fuels.

Tesla plans to invest €5 billion in its battery cell factory at Gruenheide near Berlin to complement its nearly finished electric car factory at the same location, according to estimates from the German economy ministry.

German bureaucracy blamed for delay


The unusually high investment volume means that the US car manufacturer can count on German state subsidies of €1.14 billion, Tagesspiegel newspaper reported on Sunday.

This chimes with a February report by Business Insider, which said Tesla stands to receive at least €1 billion in public funding from Germany for setting up its battery cell factory near Berlin.

The economy ministry spokesperson said there was no final sum yet because talks with the carmaker and the European Commission are ongoing, adding that a final decision is likely before the end of the year.

Tesla Chief Executive Elon Musk last month said he hoped the first cars at its planned gigafactory in Gruenheide could be built in October or soon afterwards.

Tesla has pushed back the expected opening of the gigafactory to late 2021, blaming German bureaucratic hurdles. The plant has also faced local resistance because of environmental concerns.

Economy Minister Peter Altmaer last Thursday said that carmaker Opel will receive a €437 million government grant for its battery cell factory in Kaiserslautern as part of the wider European initiative to create a homegrown battery industry.

Newsletter

Related Articles

0:00
0:00
Close
London Science Museum Ends Long-Running BP Sponsorship
Scottish Homeowners Prepare Valuation Challenges Over Proposed Mansion Tax
UK Prosecutors Consider Charges Against Undercover Police in Spycops Scandal
James Cleverly Leaves Shadow Cabinet to Run for London Mayor
Avanti West Coast Drivers Agree 3.6% Pay Rise, Averting Strike Action
Allianz Explores £5 Billion Takeover of British Roadside Assistance Group AA
UK Government Retreats From Plan to Unfreeze Personal Income Tax Threshold
Northern Ireland Leaders Press UK Government for Sustainable Funding Settlement
UK Health Agency Warns Nationwide Salmonella Outbreak Could Worsen
NHS Warns Autism and ADHD Assessment Costs Have Become Unsustainable
UK Rejects Moratorium on AI Data Centres Despite Energy and Water Concerns
Thames Water Creditors Offer Government Golden Share in £10 Billion Rescue Plan
UK Warns Defence Executives of Russian Assassination and Sabotage Threats
Bank of England Holds Interest Rate at 3.75% Amid Inflation Risks
UK Restricts Early Prison Release for Serious Offenders as Jails Near Capacity
Genetic Study Finds Medieval Britain’s ‘Conquest Man’ Had Scandinavian Origins
Kemi Badenoch Plans Conservative Frontbench Reshuffle After Cleverly Departure
Nissan Sunderland Plant Highlighted as Key Economic Anchor for North East England
UK Arts Report Finds Women Face Persistent Barriers to Career Progression
Private Equity Consolidation of UK Veterinary Practices Raises Consumer Cost Concerns
South West Water Ranked Worst in England for Environmental Performance
British Train Drivers Secure 3.6% Pay Rise, Averting Strike Threat
UK Prosecutors Consider Charges Against Officers in Undercover Policing Scandal
James Cleverly Leaves Conservative Shadow Cabinet to Run for London Mayor
Allianz Explores £5 Billion Takeover of British Roadside Assistance Group AA
Bank of England Holds Interest Rate at 3.7% as Growth Stalls and Inflation Eases
UK Government Announces Electricity VAT Cut and £2 Bus Fare Cap
UK Officials Highlight 80 Years of Diplomatic Relations With Philippines
Heavy Rain Disrupts Parts of England After Weeks of Extreme Summer Heat
More Than 200 Extra Police Officers Deployed Across Cleveland After Violent Incidents
Burnham Meets Northern Ireland Leaders for Talks on Economy and Youth Employment
Burnham to Abstain From UK Assisted Dying Vote
NHS Leaders Warn of Severe Financial and Staffing Pressures Ahead of Autumn
UK Treasury Prepares October Budget as Defense and Public Spending Pressures Mount
Scottish Government Publishes Draft Bill for Second Independence Referendum
Royal Navy Tracks Russian Warships and Sanctioned Vessels in 72-Hour Operation
UK and Ukraine Agree AI-Focused Defense Technology Partnership
US Reportedly Weighs Falkland Islands Policy Shift to Pressure UK Over NATO Spending
UK Government Mobilizes Emergency Aid as British Nationals Remain Missing After Nepal Floods
UK Hospitality Industry Reports Stronger Summer Trading but Seeks Tax Relief
Reform UK Proposes £30 Tax Credit for Long HMRC Helpline Waits
Labour Debates Caps on Political Donations Ahead of Future Elections
England Accelerates Housing and Planning Reforms Amid Affordability Crisis
NHS Expands Walk-In Community Health Centers to 40 Locations
UK Regulators Expect Meta to Apply Stronger Child Safety Standards Globally
UK Groups Demand Faster Transport Decarbonization After Extreme Summer Weather
UK Launches 10,000 Work Experience Placements as Youth Unemployment Concerns Rise
UK Government Faces Difficult Autumn Budget Choices Over Defense, Spending and Taxes
UK Government Rejects Calls to Slow AI Data Center Expansion
IMF Raises UK Growth Forecast to 1% Despite Global Supply Chain Risks
×