The European Commission decided on 11 August to open an in-depth investigation into €95 million of state aid granted by Poland to the chemical company LG Chem for the development of a production facility for electric vehicle battery cells in the region of Dolnośląskie.
“We will carefully examine whether the support granted by Poland was necessary for LG Chem's decision to expand its existing cell production facility in that Member State”, promised Margrethe Vestager, Vice-President of the Commission responsible for Competition, in a statement.
In 2017, LG Chem decided to invest over €1 billion to expand its production capacity for lithium-ion cells and modules and battery packs for electric vehicles in Poland.
In 2019, Poland notified the Commission of its plans to grant €95 million of public aid for this capacity expansion.
The Commission is doubtful about the incentive effect of the measure. It questions whether LG Chem's decision to increase its battery production capacity in Poland was a direct consequence of the Polish State aid or whether the investment would have been carried out in the absence of the aid. It cannot rule out the possibility that the public support exceeds the maximum aid level allowed for the project. (Original version in French by Lionel Changeur)