EU Looks to Tesla, BMW and Others to Charge $3.5 Billion Battery Project

Margrethe Vestager, European Commissioner for A Europe Fit for the Digital Age, speaks at a news conference on the Digital Services and Digital Markets Acts at the European Commission headquarters in Brussels, Belgium on Dec. 15, 2020. Olivier Matthys/Pool via Reuters File Photo

BRUSSELS—The European Union has approved a plan that includes giving state aid to Tesla, BMW and others to support the production of electric vehicle batteries, helping the bloc to cut imports and compete with China.

The European Commission’s approval of the 2.9 billion euro ($3.5 billion) European Battery Innovation project, follows the launch in 2017 of the European Battery Alliance that aims to support the industry during the shift away from fossil fuels.