Does subsidy policy improve battery endurance level?

We can infer that the effective combination of subsidy policy and dual credit policy effectively improves the endurance level of batteries. To a certain extent, for the decision of the battery endurance level of the battery supplier, the effect of the subsidy policy is better than the dual credit policy.

Does government subsidy affect battery R&D?

It has been derived that the cost-sharing ratio is inversely proportional to the government’s subsidy ratio for battery R&D, indicating that government subsidies for battery R&D reduce the burden on the battery supplier, fostering more technological innovation.

How does a subsidy policy affect the EV industry?

The subsidy policy can reduce corporate input costs and increase their profit levels. From a cost–benefit perspective, for the battery supplier, the primary costs may lie in R&D and production of batteries. For the EV manufacturer, costs include not only the R&D and production of EVs but also the construction of charging and swapping stations.

How much state aid will a new EV factory get?

The state aid consists of a € 700m (£601m) direct grant and a € 202m (£174m) guarantee. The factory will have an annual capacity of 60GWh, which is equivalent to 800,000 to one million EVs, depending on the size of the battery. Production at the plant will begin in 2026, and gradually scale up to reach full capacity in 2029.

Will Germany build a battery factory?

Building the plant in Germany “is an important step for the electrification of transport in Europe, while preserving the level playing field in the Single Market,” she added. The original plan for the battery factory was announced in March 2022 with construction scheduled to begin in 2025.

How EV supply chain model is under subsidy policies?

EV supply chain model under subsidy policies In order to incentivize EV manufacturers to invest in building stations and to encourage the battery supplier to allocate higher R&D costs to enhance battery endurance, the government provides subsidies based on specific proportions (Zhang et al., 2023).