The European Commission has announced an additional €1 billion fund to support electric vehicle (EV) battery manufacturing. This funding is part of the EU's €4.6 billion Innovation Fund aimed at promoting net-zero technologies and renewable hydrogen.
European EV manufacturers face intense competition from Asia, coupled with lower-than-expected consumer demand, impacting the job market. Commissioner Wopke Hoekstra emphasized the EU's commitment to supporting citizens and businesses through investments in cutting-edge projects like net-zero emission technology and renewable hydrogen.
To counteract fierce competition from China, the EU has increased tariffs on Chinese-made EVs, addressing what it considers unfair subsidies. Swiss auto supplier Feintool plans to close a German plant and lay off up to 200 employees due to weak EV demand and uncertainties in transitioning to renewable energy.
