BERLIN — Tesla stands to obtain not less than 1 billion euros ($1.2 billion) in public funding from Germany for organising a battery cell manufacturing facility close to Berlin, Enterprise Insider reported on Monday.

The European Union final week accepted a plan that features giving state help to Tesla, BMW and others to help the manufacturing of electrical car batteries and assist the bloc to scale back imports from business chief China.

The EU’s approval of the two.9-billion euro European Battery Innovation challenge, which incorporates greater than 40 firms, follows the launch in 2017 of the European Battery Alliance to help the business through the shift away from fossil fuels.

Enterprise Insider quoted German authorities sources as saying Tesla would get subsidies of greater than 1 billion euros from the federal authorities and the regional state of Brandenburg, the place Tesla is constructing a car and battery factory due to open in the summer.

Tesla CEO Elon Musk mentioned in October that the automaker will construct the Mannequin Y with a new structural battery design and technology on the manufacturing facility.

A spokeswoman for Germany’s financial system ministry mentioned it was not but clear how a lot federal help Tesla would obtain.

The ministry mentioned final week that Berlin had made almost 1 billion euros out there for the preliminary battery cell alliance and deliberate to help the second challenge with one other 1.6 billion euros.

A spokeswoman for the financial system ministry within the state of Brandenburg declined to remark.

Tesla was not instantly out there for remark.

The federal authorities is anticipated to finance the best a part of the subsidies with Brandenburg prone to contribute lower than 10 p.c. The ultimate determination on the precise subsidies for Tesla will most likely take a number of extra weeks.