This has been muted for a while. Many questioning how this passed EU State Aid rules and regulations, and I guess we'll hear more about that in the coming months. There are several other questions it will be interesting to see play out. Firstly, despite €1 Billion being a substantial sum, we saw from BNEF this week a forecast of $1.2 Trillion being required this side of 2030 to achieve predicted need, can €1Billion really get to a 30% of global capacity? The other question, is how competitive a European plant can be, against Chinese and other APAC locations? The good news of course is that the drive for energy storage and eMobility is accelerating, and making renewables every more easy to implement into the grid, and transport tailpipe emissions free, can only be a good thing. And Hyperion will continue to serve these sectors as we have been doing for the last four years.
Yet, minister Altmaier had some news concerning the targets of the planned battery cell production in Europe. The goal is to cover around 30 percent of global demand for battery cells from German and European production by 2030. According to what he calls “legitimate estimates”, worldwide demand for mobile and stationary power storage systems will increase more than tenfold by this time. So, while politics are clear in what they want, it is the industry Altmaier explicitly asks to deliver. For manufacturers to venture into the investment-intensive business, his ministry, the BMWI is providing 1 billion euros in subsidies until 2021. This funding framework will be set up in accordance with the possibilities of the “Important Projects of Common European Interest” opened up by the European Commission. Specifically, the government wants to support German companies that cooperate with European partners.