- Poland grants €36M to support a €325M investment in a new Li-ion battery plant.
- The plant will produce batteries for over 80,000 electric vehicles annually.
- The project will create more than 700 direct jobs in the Dolnoślaskie region.
- The aid aligns with EU State aid rules, fostering regional development.
Investment Aid Approval
The European Commission has approved Poland's €36 million investment aid to LG Chem for a new electric vehicle battery plant in the Dolnoślaskie region. This decision aligns with EU State aid rules, ensuring the aid contributes to regional development while maintaining fair competition.
Project Details
The €36 million aid will support LG Chem's €325 million investment in a vertically integrated manufacturing plant for lithium-ion (Li-ion) batteries. These batteries are essential for electric vehicles, and the new plant is expected to supply batteries for over 80,000 electric vehicles annually within the European Economic Area (EEA).
Economic Impact
The project is anticipated to create more than 700 direct jobs in the Dolnoślaskie region, which is eligible for regional aid under Article 107(3)(a) of the Treaty on the Functioning of the European Union. The aid measure was assessed under the Guidelines on Regional State Aid for 2014-2020, which support economic development and employment in less developed EU regions.
Commission Findings
The Commission found that without public funding, the project would not have been carried out in Poland or any other EU country. The aid is limited to the minimum necessary to trigger the investment in Poland rather than outside the EEA. The investment aid will contribute to job creation, economic development, and the competitiveness of a disadvantaged region. The Commission concluded that the positive effects on regional development outweigh any potential distortion of competition caused by the State aid.
