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European Commission and EIB Launch €3 Billion Initiative to Strengthen EU Battery Manufacturing Sector

ByNeelima
2024-12-04.5 months ago
European Commission and EIB Launch €3 Billion Initiative to Strengthen EU Battery Manufacturing Sector
The European Commission and EIB launch a €3 billion initiative to strengthen the EU's battery manufacturing sector, focusing on innovation and sustainability. Image Credit : POSSESSED PHOTOGRAPHY / UNSPLASH

The European Commission and the European Investment Bank (EIB) announced a significant new partnership to drive investment in the EU's battery manufacturing sector. This effort aims to strengthen Europe's global battery market by supporting innovation and creating a sustainable, resilient battery value chain.

The partnership will provide €3 billion in support, including €200 million for InvestEU, €1 billion in grants, and €1.8 billion investments. This initiative is part of the EU's broader strategy to foster a competitive, green, and sustainable battery ecosystem.

€200 Million InvestEU Top-Up to Support Battery Manufacturing Innovation

The €200 million boost to InvestEU will support innovative European battery value chain projects for the next three years. It aims to address financing challenges, facilitate EIB venture debt operations, and help companies transition from R&D to commercialization. Key goals include reducing market failures, attracting private investment, and establishing resilient energy storage supply chains. The focus will be on advancing battery technologies and recycling innovations, excluding mining and extraction activities.

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In addition to the InvestEU top-up, the EIB will invest €1.8 billion in the broader battery value chain, including research. Over the past six years, the EIB has provided €6 billion in financing, supporting Europe’s clean energy transition.


The total support, exceeding €3 billion, aims to incentivize investment in Europe’s battery manufacturing industry and enhance its competitiveness. This initiative follows the European Commission's December 2023 call to allocate up to €3 billion in support for the sector.

Thomas Östros, EIB Vice President in charge of energy, said. “By supporting innovation in the sector, we are paving the way for a robust green economy that thrives on clean energy and drives job creation. Our commitment to fostering a competitive battery ecosystem will empower businesses and communities, ensuring that Europe leads the charge towards a climate-neutral future."

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Strengthening Europe's Battery Manufacturing and Recycling Capabilities

The initiative is vital to the EU's circular economy, aiming to reduce the environmental impact of battery production. By enhancing battery manufacturing, recycling methods, and innovation within Europe, the EU intends to lessen its reliance on external sources. The initiative seeks to boost local manufacturing capacity and advance the European Green Deal and Net-Zero Industry Act goals.

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