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EU to investigate $112 mln Polish aid for LG Chem’s electric car battery plant

EU to investigate $112 mln Polish aid for LG Chem’s electric car battery plant

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South Korean electric vehicle (EV) battery maker LG Chem in 2017 said it would invest more than 1 billion euros to ramp up production capacity at its Polish plant

BRUSSELS: EU state aid regulators have opened an in-depth investigation into Poland’s plan to grant 95 million euros ($112 million) in aid to LG Chem to expand its electric vehicles battery plant in the country, voicing doubts whether the support complies with the bloc’s rules.

South Korean electric vehicle (EV) battery maker LG Chem in 2017 said it would invest more than 1 billion euros to ramp up production capacity at its Polish plant. Poland subsequently sought European Commission approval to grant 95 million euros to the company.

The EU competition enforcer cited several concerns about the Polish support, in particular whether it provides an incentive for the plant expansion and the possibility that it may exceed the level of aid allowed.

Source: reuters
Anand Gupta Editor - EQ Int'l Media Network
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