On Friday 18 March, the European Commission decided to validate, after an investigation, €95 million of public support granted by Poland to the chemical company LG Chem Group (‘LG Chem’) in order for the company to invest in the expansion of its production capacity for electric vehicle batteries, which is based in Biskupice Podgórne, in the Dolnośląskie region of Poland.
“The aid will contribute to job creation and to the economic development of a disadvantaged region, without unduly distorting competition”, said Competition Commissioner Margrethe Vestager.
In 2017, LG Chem decided to invest more than €1 billion to expand its production capacity for lithium-ion cells, battery modules and battery packs for electric vehicles at its existing plant in the Dolnośląskie region of Poland.
The Commission's investigation showed that without the Polish aid of €95 million, LG Chem would have opted to invest outside of the EEA. The investigation also showed that the aid was limited to the minimum necessary to incentivise LG Chem to carry out the investment in Poland, as it did not exceed the amount necessary to increase the profitability of the project in Poland to the same level as one in the third country. Finally, the aid will contribute to job creation, as well as to economic development and to the competitiveness of the disadvantaged region of Dolnośląskie. (Original version in French by Lionel Changeur)