U.S. electric vehicle maker Tesla stands to receive at least 1 billion euros ($1.2 billion) in public funding from Germany for setting up a battery cell factory near Berlin, Business Insider reported on Monday.

Axar.az reports that the European Union last week approved a plan that includes giving state aid to Tesla, BMW and others to support the production of electric vehicle batteries and help the bloc cut imports from industry leader China.

The EU’s approval of the 2.9 billion euro European Battery Innovation project, which includes more than 40 companies, follows the launch in 2017 of the European Battery Alliance to support the industry during the shift away from fossil fuels.