The EU increases investments in electric cars: open challenge to China

The European Union plans to accelerate the energy transition in 2024, aiming to reach net-zero emissions by 2050.
At the same time, the EU wants to close the gap with China as a leading producer of electric cars, renewable energy and others key sectors in the green transition.
Earlier this year, the European Union announced 4 billion euros in aid for new electric car battery factories.
Northvolt, the Swedish battery maker, will receive a 902 million euro subsidy to build a new factory in Germany.
France will receive the largest share, investing 2.5 billion euros in new factories across the country.
As with all EU aid, it represents a small share of the broader measures taken by individual countries.
A further 9.1 billion euros will be invested in Italy, Austria, Slovakia, Belgium, Spain, Hungary and Germany.
At the same time, European companies are stepping up efforts to centralize production within the continent.
Northvolt announced Tuesday that it has secured more than $13 billion in capital for new investments, including $5 billion in the form of EU loans.
The European Investment Bank is a key shareholder in Northvolt's new operations.
Northvolt will expand its operations in key EU countries.
The company has also received new orders for electric batteries from BMW, Scania, Volkswagen and other European brands.
read also Stellantis: EU challenges China for the electric car market.
Here's how The race for the green transition Last year, the European Commission launched an investigation into Chinese subsidies for the production of electric cars.
In 2023, China has intensified its competition by surpassing Germany and Japan in electric car production.
Shenzhen-based BYD has overtaken Tesla to become the world's largest manufacturer and seller of green vehicles.
All of this was a wake-up call for European automakers.
Europe has consistently maintained a competitive advantage in automotive manufacturing, but the electric transition sees China threaten this dominance.
As Europe ramps up production, BYD has announced plans for a new gigafactory in Hungary.
BYD expanded its operations in Europe in August 2023.
A key component of China's advantage is the mining of rare earths, the raw materials used in the production of car batteries.
China has by far the largest proven reserves of rare earths, at 44 million tonnes.
Vietnam is in second place, with 22 million.
Brazil and Russia share third place with 21 million tons each.
In the EU, the only proven reserves are found in Greenland, formally part of Denmark, at 1.5 million tonnes.
Sweden is believed to have a similar amount of reserves in the far north, but it has not yet been possible to prove this with certainty.
Article published on Money.it international edition on 2024-01-17 11:00:00.
Original title: EU steps up energy transition, fighting-off China's EV expansion