Tesla has withdrawn its request for public funding for its battery plant project in Brandenburg, just outside Berlin, an Economics Ministry spokesman said on Friday.
“Tesla continues to stick to its plans for the Gigafactory Berlin-Brandenburg battery plant, but will dispense with state funding IPCEI,” the spokesperson said, referring to European subsidies allocated to “important projects of common European interest”. Tesla was not immediately available for comment.
The European Union approved a plan in January that included granting state aid to Tesla, BMW and others to support the production of electric vehicle batteries and help the bloc cut imports from the leader of industry, China.
(Also Read | Five Highlights From The Tesla Factory In Texas Worth Over $ 1 Billion)
Tesla is expected to receive € 1.14 billion ($ 1.28 billion) in EU funding under the plan, with a final decision likely by the end of the year. The electric vehicle maker also applied for regional funding from Brandenburg in November 2020, according to the regional government website.
A spokesperson for the Brandenburg Economics Ministry said the request had not been withdrawn. It is not disclosed how much Tesla is asking for, but investments worth more than $ 100 million typically receive 6.8% of their value, the site says. The company itself is investing 5 billion euros in the battery plant, according to estimates by the Ministry of the Economy.
(Also read | Elon Musk sells more than half of the shares promised on Twitter)
Construction at the plant site, where Tesla has started building with pre-approval permits pending final approval from the regional government, has progressed well in recent weeks, the spokesperson said.
The latest round of online consultations for the public to voice concerns about the site ended last week and Musk has said he officially hopes to begin production by the end of the year.
This story was posted from an agency feed with no text editing. Only the title has been changed.