EU to investigate aid for LG Chem’s electric car battery plant

European Union (EU) state aid regulators have started an in-depth investigation into Poland’s strategy to grant 95 million euros ($112 million) in aid to LG Chem to expand its electric vehicles battery plant in the nation, raising doubts whether the support adheres to the bloc’s rules.

South Korean electric vehicle battery maker LG Chem in 2017 informed that it would spend more than 1 billion euros to increase production capacity at its Polish plant. Poland subsequently sought European Commission authorization to grant 95 million euros to the company.

The EU competition enforcer mentioned several concerns about the Polish support, in particular, whether it offers an incentive for the plant expansion and the possibility that it may cross the level of aid permitted.