Brussels (AFP)

A colossal aid of 3.2 billion euros to develop a European sector of electric batteries: Brussels has given the green light to this "Airbus batteries", which intends to compete with Asia for cleaner transport.

The payment of this public money, by seven member states including Germany and France, to a consortium of 17 companies, was authorized Monday by the European Commission.

This aid must generate the mobilization of "additional 5 billion euros in private investment", which will allow Europeans, hope Brussels, to face the Chinese producers, very much ahead in this sector.

In detail, Germany is authorized by Brussels to invest up to 1.25 billion euros. Then come France (960 million), Italy (570 million), Poland (240 million), Belgium (80 million), Sweden (50 million) and Finland (30 million).

This "important project of common European interest" (PIIEC) will have 17 direct participants from the entire sector, such as the BMW car manufacturer or BASF chemists and the Belgian Solvay, but also small and medium-sized enterprises (SMEs).

These companies will collaborate "closely with each other and with more than 70 external partners", companies but also "public research organizations from all over Europe", according to the Brussels communiqué.

"The authorized aid will ensure that this important project will go ahead without unduly distorting competition," said EU Competition Commissioner Margrethe Vestager.

The goal of the project, which runs until 2031, is to develop Li-ion batteries "that have a longer life", "recharge faster" and "are safer and more environmentally friendly. that batteries currently on the market. "

- "Financial risks" -

"The demand for batteries is expected to increase very rapidly in the coming years," the Commission anticipates.

However, the delay of European countries in the battery sector, particularly against China, is regularly noted by the players in the automotive sector.

According to the Commission, the "significant technological and financial risks" that accompany this large project justify the granting of such public aid.

But "a significant portion of the additional profits made by participants will be shared with taxpayers through a recovery mechanism," she says.

This means that if the projects "generate additional net income above projections, the companies will return to the respective Member States a portion of the money collected from the taxpayers".

German Economy Minister Peter Altmaier welcomed the "great success" in a statement.

"The entire value chain of the battery chain can be deployed on European soil, thus maintaining a strong industrial production in Europe", for its part insisted the French Ministry of Economy in a statement.

"The emergence of the European battery industry will contribute to achieving the European Union's goal of becoming the first carbon-neutral continent by 2050," he added.

Brussels stresses that the project aims to "improve the environmental sustainability" of production, reducing its carbon footprint and the amount of waste, but also by developing the dismantling of batteries and their recycling.

The fight against global warming is one of the priorities of the Commission, which must present its first steps in this area on Wednesday.

© 2019 AFP