The Belgians from ABEE gave up the EUR 1.4 bln investment that provided for the production of batteries for electric cars planned in Galati. ABEE (Avesta Battery & Energy Engineering) conditioned the investment on obtaining a state aid.
Economy Minister Radu Ștefan Oprea told Economedia that there was no possibility of financing this project in the form desired by the ABEE.
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ABEE’s decision on the gigafactory location will be influenced by factors such as infrastructure, workforce availability, and governmental support. The company aims to finalize the location in the coming months and commence construction shortly thereafter. While ABEE has decided to end its collaboration on the project in Romania, we continue to explore other promising locations to support our strategic growth.Avesta Holding remains dedicated to pioneering advancements in battery technology and supporting the global shift towards sustainable energy solutions. Stay tuned for further updates on the gigafactory project and Avesta Holdings continued efforts to drive innovation in the energy sector,” the Belgian start-up announced on its
website.
In December last year, the Minister of Economy Radu Ștefan Oprea had said that the Romanian authorities were still trying to find a source of funding for the state aid for ABEE. “We are trying to identify the source of European funding. Unfortunately they are not managed by MEAT. Initially I thought that one source could be the Just Transition Fund, the Belgians choosing one of the counties that are in this program. Now possible sources are the Modernization Fund or those from the National Resilience and Recovery Plan (PNRR) for batteries”, Radu Ștefan Oprea said at that time.
“In the PNRR there is a budget for the production of batteries, only that budget and the granting conditions there are not very favorable for investing in a giga factory. The Belgians said they wanted an investment of up to 1.4 billion euros. And the amounts granted through PNRR, the 259 million euros, were for 2 activities: for the production of photovoltaic panels and for batteries. We initiated discussions with the Ministry of European Funds and the Ministry of Energy to identify solutions. It is normal to identify this source of funding. We are continuing the discussions”, Florin Spătaru, advisor to the Prime Minister on economic issues and former Minister of the Economy, also explained back then.
In June 2023, the Press Office of the Galati City Hall announced that the Belgian company Avesta Battery and Energy Engineering (ABEE) will build a battery factory for electric cars in the Galati Free Zone, an investment of 1.4 billion euros, which will ultimately generate about 8,000 jobs.
ABEE (Avesta Battery & Energy Engineering) is a “startup”, a small company, established in 2019 by professor Noshin Omar, with 20 employees, which does not yet have production, only research.