Published : 5 days ago, on 04/12/2024

BRUSSELS (Reuters) – The European Commission called on Tuesday for an additional 1 billion euros ($1.1 billion) of EU funds to be made available to support electric vehicle battery cell manufacturing, as the EV sector shows signs of pressure.

This would form part of an overall 4.6 billion euros set aside from the EU’s Innovation Fund to boost net zero technologies and renewable hydrogen in the bloc, the Commission said.

European electric vehicle makers face fierce competition from Asia in particular and demand has lagged expectations, which in turn has hit jobs in the region.

“As promised, we’re already delivering for European citizens and businesses. We are investing 4.6 billion euros to back cutting-edge European projects in net-zero technologies, electric vehicles batteries and renewable hydrogen,” EU Commissioner Wopke Hoekstra said in a statement.

European carmakers have been struggling with weak demand and a slower-than-expected shift over to electric vehicles, while also trying to fend off competition from China. The European Union has proposed raising tariffs on Chinese-built EVs to counter what it says are unfair Chinese subsidies.

On Tuesday, Swiss automotive supplier Feintool said it would close one of its sites in Germany and cut its workforce by as many as 200 people due to weakness in demand for electric vehicles and uncertainty over the shift to renewable energy.

($1 = 0.9506 euros)

(Reporting by Sudip Kar-Gupta; Editing by Susan Fenton)