Analysis: U.S. green subsidies heighten fears for German industry

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Building a lithium-ion battery factory in Germany, Europe's top car producer, had seemed like a no-brainer for Northvolt. But a new U.S. law offering hefty subsidies to local manufacturers of green technology has given the company pause for thought.

Chief Executive Peter Carlsson said that under the Inflation Reduction Act , Swedish-based Northvolt could get up to 800 million euros in U.S. state aid to build a factory making the batteries used in electric vehicles.

The act introduces tax credits related to investment in green technology, plus tax breaks for consumers buying an electric vehicle or other green product made in North America. German Economy Minister Robert Habeck, of the Greens party, told Handelsblatt newspaper there was a danger "the next wave of technological innovation does not take place in Europe" - innovation key to helping Europe exit its energy crisis.

possibly reversing parts of the act or seeking exemptions for European companies modelled on those for Mexico and Canada.this week to convince Washington it is not in its interests to weaken European companies while Western allies are facing intense competition from China.

 

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The US isnt going to cede green industry to germany. And they have the fossil fuel energy source to make sure they are the number one manufacturers. Unlike germany.

And when the grid can't handle charging all of these cars, what then? It's already happened in California. Didn't make a big splash on the news. But electric car owners were asked to stop charging their cars for a few days this summer. At least they have diesel public transport

Peculiar that green energy will apparently be the thing that breaks globalization.

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