LG Chem plant in Poland to receive $ 112 million investment

LG Chem plant in Poland to receive $ 112 million investment

August 11, 2020 0 By autotimesnews

EU state aid regulators have launched an investigation into Poland’s plan to provide 95 million euros ($ 112 million) in aid to battery company LG Chem to expand capacity.

EU officials question whether the support is in line with the bloc’s rules. LG Chem announced in 2017 that it is investing more than € 1 billion to build up production capacity at its Polish electric car battery factory.

Subsequently, Poland requested permission from the European Commission to provide the company with 95 million euros. The EU competition authority has raised a number of concerns about Poland’s support, in particular whether it is an incentive to expand the plant and the possibility that it may exceed the permitted level of assistance.

The investment will allow LG Chem to increase its battery capacity to about 65 gigawatt hours, making the Polish plant one of the world’s largest lithium-ion cell factories, according to the European Investment Bank, which supports the project.

More than 1,800 jobs will be created at the Wroclaw site, bringing the total headcount to over 6,000 full-time employees by the end of 2022.