Investments in industrial projects in Germany and the EU, such as battery factories, will not be viable if the region’s politicians cannot contain rising energy prices in the long run, said the head of Volkswagen AG.
According to Thomas Schaefer, the European Union is losing competition to other countries in the world, especially in terms of gas and electricity prices for industry.
“Unless we can quickly and reliably lower energy prices in Germany and Europe, investments in energy-intensive production or new battery factories in Germany and the EU will be practically unfeasible,” he wrote on the social network LinkedIn (banned in Russia).
And he added that apparently he would have to look for other places for the implementation of the plans.
While the US is helping companies ramp up production of electric vehicles and reduce reliance on China for battery components, European Union officials say the subsidy program “violates WTO rules and discriminates against non-US companies.” Schaefer called the European Union’s position “outdated and bureaucratic rules”.
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Volkswagen plans to open six battery factories in Europe by 2030 under the leadership of its battery company PowerCo.
Source:bloomberg.com
A picture: Depositphotos