Tesla looks set to receive at least 1 billion euros ($1.2 billion) in public funding from Germany for establishing its new Gigafactory in the country.
Last week, the European Union approved a plan to give state aid to Tesla, BMW and others to support the production of electric vehicle batteries, while helping the block reduce its reliance on imports from China. This 2.9 billion euro ($3.5 billion) European Battery Innovation project will include incentives for more than 40 companies.
Business Insider notes that German government sources have stated that Tesla will receive more than 1 billion euros in subsidies from the federal government and the regional state of Brandenburg where it is currently building its first Gigafactory in Europe.
Read Also: Tesla Model Y Getting A Redesign At German Gigafactory
The economy ministry in the state of Brandenburg has declined to comment on the issue, but it is reported that the state will likely contribute less than 10 per cent of the subsidies with the rest coming from the federal government.
The construction of the Gigafactory in Berlin hasn’t been without its hiccups. BBC reports that in early December, a court in Frankfurt an der Oder ordered the automaker to temporarily stop forest clearing at the site pending examinations into how the factory will impact the habitats of local lizards and snakes. A prominent environmentalist group alleged that Tesla’s deforestation would destroy the habitats of sand lizards and smooth snakes, two protected species in Germany. The group also claimed the construction work will disturb the reptiles during their winter hibernation.
Later that month, according to Reuters, the Berlin-Brandenburg Higher Administrative Court ruled that Tesla wouldn’t be allowed to clear peripheral areas of the site, but that halting work for the rest of the area could not be justified.
