© varta consumer Electronics Production | July 01, 2020
German battery manufacturer receives funding for cell production facility
VARTA AG receives public funding of EUR 300 million for battery cell production facility.
The manufacturer has been informed by the Federal Ministry of Economic Affairs and Energy (BMWi) about public funding totaling EUR 300 million for two projects in connection with the European initiative to construct a battery cell production facility within the framework of an Important Project of Common European Interest (IPCEI). The State government of Baden-Württemberg had previously already resolved, at the end of March this year, to co-finance the grant to be awarded by the BMWi for the first project. In mid-May, the Bavarian government then committed to co-financing the second project within the framework of this European initiative. Both projects have now received formal approval from the Federal Ministry of Economic Affairs and Energy as a direct sponsor of VARTA AG. The first project for the development and industrialisation of coin shaped lithium-ion cells has received funding in the amount of approximately EUR 198.5 million and will run until the end of 2024. The second project for the development and industrialisation of small lithium-ion cells in addition to special format lithium-ion battery cells, the duration of which will run until the end of June 2022, is to be supported to the tune of up to EUR 101.5 million. The total public funding received in the form of grants by VARTA for the two IPCEI projects therefore amounts to EUR 300 million. The company says it will initially finance the supported project. The approved public funding will then be used to reimburse VARTA for the depreciation from the investments and the operating expenses incurred in connection with the two supported projects.