Commission approves €267 million Slovak State aid measure to support Volvo Cars’ new electric vehicle plant | EC Press

The European Commission has found that Slovakia’s €267 million measure in favour of Volvo Cars is in line with EU State aid rules. The investment aid will support the establishment of a new electric passenger vehicles production plant in Valaliky near Košice in Eastern Slovakia. The measure will contribute to the EU’s strategic objectives relating to job creation, regional development and the European Green Deal.

Under the measure, the aid will take the form of direct grants totalling approximately €267 million. Volvo Cars will invest €1.2 billion in the project. The plant is expected to have an initial capacity of approximately 250,000 electric vehicles per year. The project will create at least 3,300 direct jobs, as well as further indirect jobs. The project is also expected to bring sustainability benefits by aiming to be climate neutral from start of production and by offering only electric vehicles.

The production plant will be located in Valaliky, an area eligible for regional aid under Article 107(3)(a) of the Treaty on the Functioning of the EU (‘TFEU’).