The electric car manufacturer Tesla is expected to receive government funding of around 1.1 billion euros (1.31 billion dollars) from a European Union programme supporting the production of battery cells, according to a media report.
Berlin's Tagesspiegel newspaper reported on Sunday that the funding from the German Ministry of Economics was ready for approval. The ministry did not comment on the report.
At the beginning of the year, the EU Commission approved billions in aid to support battery production in Europe for the second time.
Germany and 11 other EU countries can provide up to an additional 2.9 billion euros, with the aim of making progress in electromobility.
The Tesla factory in the German state of Brandenburg can also benefit from the funding as Germany is coordinating the second battery programme.
Tesla not only wants to build the first electric car factory in Europe in Gruenheide, near the German capital Berlin, but also mass produce battery cells there.
In Gruenheide, the production of electric cars was originally set to start at the beginning of July, but it was delayed due to a series of issues, including the processing of paperwork, such as an environmental permit to be drawn up by the Brandenburg authorities.
Tesla now aims to start production at the end of the year, but it is not clear when there will be a decision regarding the permit.
