Germany and France win €10bn race for electric battery factories

Both Germany and France had to sweeten the subsidy pot after the US last year unveiled major tax subsidies to cut carbon emissions to boost domestic manufacturing

Europe, home to carmakers such as Volkswagen and BMW, has been trying to lower dependency on Asian countries for batteries that will power green electric cars.

Two electric vehicle battery makers plan to spend around €10bn on factories in Europe, a big win for Germany and France in the subsidy race with the US.

Both plants will start construction in 2026, employ thousands of people and supply batteries to European car makers.