Volkswagen warns EU that US is beating it in race to attract battery makers

Carmaker says it is progressing faster on US factory than European one thanks to subsidies

Volkswagen has told the EU it is making faster progress in building a US battery factory than one in eastern Europe because of huge subsidies made available by the White House – adding to pressure on Brussels to offer bigger green incentives.

Europe’s largest carmaker has warned the EU it is being overtaken in the race to attract gigafactory investment, after Joe Biden announced a package of help to achieve net zero aims worth a total of $369bn (£312bn) under the Inflation Reduction Act (IRA).