The EU is planning to allow state aid for electric battery research and will offer billions of euros of co-funding to companies willing to build giant battery factories.
Brussels is concerned that the EU auto industry, which employs 13m people, could be left behind in the race to build mass market electric vehicles because of their reliance on batteries from Asia.
Carlos Ghosn, chief executive of Renault-Nissan-Mitsubishi, said at the Paris Motor Show that the industry “cannot continue to prosper” unless it builds its own capacity.
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