The European Investment Bank (EIB) has announced a €20 million venture debt loan for Tau Group, an Italian technology startup pioneering advancements in transport electrification. The InvestEU grant will help enhance the company’s production of high-performance magnet wire, which is essential for electric motors and the energy transition.
The investment will help Tau Group to grow its production capacity from 2,000 tons to 12,000 tons each year by 2027. Tau Group will upgrade its Turin plant, significantly advancing sustainability and efficiency in electric motor manufacturing and the broader industry.
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DryCycle Technology to Replace Polluting Processes
Tau Group’s patented DryCycle process is at the core of its innovative approach. DryCycle replaces traditional solvent-based wire enameling with a single-step process using advanced polymers, eliminating harmful solvents and multi-stage evaporation. The innovation eliminates solvents, lowers energy use, and minimizes waste, creating high-performance magnet wire that is environmentally friendly.
The shift promises both environmental benefits and cost efficiency, enabling Tau Group to produce both sustainable and economical wires. This breakthrough technology will accelerate advancements in electric vehicles and other electrical machinery, reinforcing Europe’s commitment to the energy transition.
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Supporting Rapidly Growing Innovation
Alessandro Izzo, EIB Director of Equity, Growth, and Project Finance said, “Electrifying the car manufacturing industry and ensuring its production efficiency is fundamental, not only to step up the fight against climate change, but also to reinforce Europe’s competitiveness.”
He added, “EIB financing aims to create a more efficient and sustainable manufacturing industry that is ready to face the challenges of the future.”
The EIB’s venture debt loan provides flexible financing for fast-growing, innovative companies. With over €6 billion invested in 200 projects since 2015, it holds Europe’s largest venture debt portfolio.