- The EU approved a €902 million German aid measure for a battery plant in Heide.
- The plant will have an annual capacity of 60 GWh, producing 800,000 to 1 million EV batteries per year.
- Production starts in 2026, reaching full capacity by 2029.
- The aid includes a €700 million direct grant and a €202 million guarantee.
EU Approves German Aid for Battery Plant
The European Commission has approved a €902 million German measure to support the construction of a battery production plant in Heide. This initiative aligns with the Green Deal Industrial Plan and aims to foster the transition towards a net-zero economy. The aid was approved under the State aid Temporary Crisis and Transition Framework, which supports key sectors in accelerating the green transition and reducing fuel dependencies.
Project Details
Germany notified the Commission of a €902 million measure to support the construction of a production plant for advanced electric vehicle batteries. The plant will have an annual capacity of 60 GWh, translating to 800,000 to 1 million electric vehicles per year, depending on battery size. Production is set to begin in 2026, with full capacity expected by 2029.
Aid Structure
The aid package includes a €700 million direct grant and a €202 million guarantee. Without this support, the plant would likely be established in the United States, where significant incentives are offered under the Inflation Reduction Act.
Commission Findings
The Commission found the German measure to be in line with Article 107(3)(c) TFEU and the Temporary Crisis and Transition Framework. The project is strategically important for the net-zero transition and is located in a disadvantaged area. The aid has an incentive effect, as it prevents the plant from being established outside the EEA. The measure is proportionate, limited to the minimum necessary, and will not lead to market overcapacity. The aid will be granted no later than 31 December 2025.
