This funding will aid in the establishment of a new electric passenger vehicle production plant in Valaliky near Košice, Eastern Slovakia, aligning with the EU's objectives for job creation, regional development, and the European Green Deal.

Slovakia's initiative involves granting €267 million to assist Volvo Cars in building their third European production facility, dedicated to electric vehicles. The aid will be provided through direct grants, complementing Volvo Cars' investment of €1.2 billion.

The new plant aims to initially produce around 250,000 electric vehicles annually and is projected to generate at least 3,300 direct jobs alongside additional indirect employment opportunities. Moreover, it pledges to prioritize sustainability by striving for climate neutrality from the onset and offering exclusively electric vehicles.

Situated in Valaliky, an area eligible for regional aid and identified as a Just Transition Fund territory, the project fulfills the criteria outlined in Article 107(3)(a) of the Treaty on the Functioning of the EU.

In assessing the measure, the Commission determined that it aligns with EU State aid regulations, specifically Article 107(3)(a) TFEU and the 2021 Regional Aid Guidelines. The Commission's findings indicate that the support package:

• Fosters job creation, economic development, and competitiveness in disadvantaged regions.
• Demonstrates an incentive effect, encouraging the beneficiary to proceed with the project within the European Economic Area.
• Poses limited impact on competition and trade within the EU, deemed necessary for establishing Volvo Car Slovakia's new production plant and contributing to regional development.
• Adheres to proportionality, ensuring the aid amount remains within the limits set by the Slovak regional aid map.
• Based on these findings, the Commission approved Slovakia's aid package, affirming its compliance with EU State aid regulations.