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3 billion euros in funding: New EU Commission aims to strengthen battery production

Just newly elected to office, the EU Commission is already launching a three billion subsidy to strengthen battery production.

Especially in the context of expanding e-mobility, domestic battery production is essential. (Photo: Volvo Trucks)
Especially in the context of expanding e-mobility, domestic battery production is essential. (Photo: Volvo Trucks)
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von Christine Harttmann

The European Commission and the European Investment Bank (EIB) have announced a new partnership to promote investments in the European battery industry. The initiative includes public funds totaling three billion euros and aims to advance a competitive and sustainable battery value chain in the EU.

The core of the collaboration is an increase of the InvestEU program by 200 million euros from the EU Innovation Fund. These funds are intended to serve as loan guarantees for innovative projects along the battery value chain and to support companies in overcoming financial bottlenecks between the development phase and large-scale market launch.

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Additionally, the EIB plans to invest 1.8 billion euros in the entire battery sector, including research, production, recycling, and infrastructure for chargers. In parallel, the Innovation Fund has launched a new funding round of one billion euros, focusing on the production of battery cells for electric vehicles.

Promotion of Innovative Technologies

The focus of the funding is on technological innovations, such as the development of advanced materials, component manufacturing, or new recycling techniques. Projects in the areas of raw material extraction or basic assembly are not considered. The goal is to build resilient and sustainable energy storage supply chains in Europe.

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Interested companies can apply via the EIB website. It will be checked whether the projects meet the criteria of the funding programs and are technically as well as commercially feasible.

Background: Europe's Path to Climate Neutrality

Battery production is considered a key factor for the transition to a climate-neutral economy. In addition to supporting the transport and energy sectors, it contributes to the EU's strategic autonomy. The measures complement the objectives of the EU Green Deal, the EU Battery Regulation, and the Net-Zero Industry Act, which promote increased production of emissions-free technologies in Europe.

The EU relies on a combination of public and private financing. The Innovation Fund is financed by revenues from the EU Emissions Trading System and aims to provide around 40 billion euros for climate-friendly technologies between 2020 and 2030. Since its launch, the fund has already provided 7.2 billion euros for 85 projects.

With these measures, the European Commission and the EIB reinforce their commitment to making the battery industry in Europe more competitive and sustainable.

Translated automatically from German.
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