DGAP-Ad-hoc: VARTA AG / Key word(s): Miscellaneous
VARTA AG, Ellwangen, ISIN: DE000A0TGJ55
Ellwangen, June 29, 2020. VARTA AG has today been informed by the Federal Ministry of Economic Affairs and Energy (BMWi) about public funding totaling € 300 million for two projects in connection with the European initiative to construct a battery cell production facility within the framework of an Important Project of Common European Interest (IPCEI).
The State government of Baden-Württemberg had previously already resolved at the end of March this year to co-finance the grant to be awarded by the BMWi for the first project. In mid-May, the Bavarian government then committed to co-financing the second project within the framework of this European initiative. Both projects have now received formal approval from the Federal Ministry of Economic Affairs and Energy as a direct sponsor of VARTA AG.
The first project for the development and industrialization of coin shaped lithium-ion cells has received funding in the amount of approximately € 198.5 million and will run until the end of 2024. The second project for the development and industrialization of small lithium-ion cells in addition to special format lithium-ion battery cells, the duration of which will run until the end of June 2022, is to be supported to the tune of up to € 101.5 million.
The total public funding received in the form of grants by VARTA for the two IPCEI projects therefore amounts to € 300 million. VARTA will initially finance the supported project. The approved public funding will then be used to reimburse VARTA for the depreciation from the investments and the operating expenses incurred in connection with the two supported projects over the respective project duration proportionately up to the aforementioned funding volume.
About VARTA AG
VARTA AG produces and markets a comprehensive battery portfolio that ranges from microbatteries, household batteries and energy storage systems all the way to customer-specific battery solutions for a wide range of uses, setting the industry standards as technology leader in many important areas. As the parent company of the Group, it is active in the "Microbatteries & Solutions" and "Household Batteries" business segments.
29-Jun-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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1081329 29-Jun-2020 CET/CEST