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The European Commission has called for an additional 1 billion euros ($1.1 billion) in EU funding to support electric vehicle battery cell production as the electric vehicle sector shows signs of distress.
The Commission said it would form part of a total of 4.6 billion euros set aside from the EU Innovation Fund to support net-zero technologies and renewable hydrogen in the bloc.
European electric vehicle manufacturers face fierce competition, particularly from Asia, and demand for electric vehicles is lagging behind expectations. These developments are hurting employment in the region.
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.
