BRUSSELS -- The European Union approved a program that includes giving state aid to Tesla, BMW and others to get about 2.9 billion euros ($3.5 billion) of state aid for battery projects that will strengthen the bloc's position in the race to produce more electric vehicles.
The support should trigger more than three times as much private investment, bringing the total spent to about 12 billion euros, the European Commission said in a statement on Tuesday.
Alongside Tesla and BMW, the 42 companies that have signed up and could receive state aid include Stellantis's Fiat Chrysler Automobiles, Rimac and Valmet.
European Commission Vice President Maros Sefcovic said the project will help "to revolutionize the battery market."
German Economy Minister Peter Altmaier said the program will create "the critical mass for the battery ecosystem in Germany and Europe."
The individual funding notices and funding amounts per company will now follow in the next step, a German economy ministry spokeswoman said.
The EU plans to cut greenhouse gas emissions from transport under the European Green Deal, an ambitious economic overhaul aimed at reaching climate neutrality by 2050.
Along the way, the EU wants to reduce its reliance on EV batteries from Asian producers. The value of Europe's battery market will reach 250 billion euros by 2025 and meet demands from the auto industry, according to the Commission.