The European Union Approved France's $1.6 Billion Support To Huineng Technology

According to Automotive News Europe, the European Commission said in a statement that it has approved the French government to provide Huineng Technology with support worth 1.5 billion euros ($1.6 billion) for research and development of a new generation of electric vehicle batteries, under EU state aid rules. The move will contribute to the achievement of the strategic objectives of the European Green Deal and the EU Battery Strategy.

Huineng Technology's research focuses on solid-state batteries for electric vehicles, which uses solid electrolytes instead of liquid electrolytes to develop batteries with higher energy density and safer than traditional lithium-ion batteries.

Founded in 2006, Huineng Technology is one of the few companies developing advanced solid-state battery technology. Previously, the company struck a deal with European automotive battery company Automotive Cells Co., a joint venture between Mercedes-Benz, Stellantis and TotalEnergies.

Huineng Technology will build a battery "gigafactory" in Dunkirk in northern France. The solid-state battery plant will be Huineng 's second (the other is located in Taiwan Province of China) and its largest. The new plant will invest EUR 5.2 billion (EUR 5.7 billion) by 2030 and is expected to create 3,000 jobs.

It is reported that the French government's 1.5 billion euros of financial assistance will be provided in the form of direct grants and will cover research and development projects until the end of 2029.