EU approves Polish state aid for LG Chem's expansion
The European Commission has found that Poland's EUR 95 million measure in favour of LG Chem is in line with EU State aid rules.
It was back in July 2019, that Poland notified the European Commission of its plans to grant EUR 95 million to support the expansion of LG Chem's plant. In August 2020, the Commission opened an in-depth investigation to assess whether the measure was compatible with its guidelines. The investigation has now been completed and the Commission has approved the grant.
The investment aid will support the expansion of LG Chem's battery cell production facility for electric vehicles in the Polish Dolnośląskie region.
"Our in-depth investigation has confirmed that Poland's €95 million public support to expand the production capacity of an LG Chem's electric vehicles battery plant is in line with our State aid rules. The aid will contribute to job creation and to the economic development of a disadvantaged region, without unduly distorting competition," says Margrethe Vestager, Executive Vice-President in charge of competition policy, in a press release from the Commission.
Back in 2017, LG Chem decided to invest EUR 1 billion to expand its production capacity of lithium-ion cells, battery modules and battery packs for electric vehicles in its existing plant in the Polish Dolnośląskie region. The new plant is expected to supply batteries for more than 295,000 EV each year. And as stated earlier, during the summer of 2019, Poland notified the Commission of its plans to grant EUR 95 million to support this expansion - which will now move forward following the Commission's approval.