The European Commission has proposed the allocation of an additional €1 billion in EU funding to bolster the manufacturing of electric vehicle (EV) battery cells.
The investment forms part of a broader commitment to strengthening investment in the EU’s battery manufacturing sector, in partnership with the European Investment Bank.
Together, the European Commission and EIB have introduced a €200 million loan guarantee from the EU Innovation Fund to the InvestEU programme, which alongside the €1 billion in grants to support EV battery manufacture and €1.8 billion in further investments by the EIB, mobilises €3 billion in public funding to enhance Europe’s battery industry.
The €200 million loan guarantee will be directed at innovative projects along the European battery manufacturing value chain, and will ‘help companies to bridge the gap between the research and development phase and large-scale commercial deployment’, the European Investment Bank said.
‘A vital priority’
“Europe is set on a path to become the first climate-neutral continent by 2050,” commented Wopke Hoekstra, European Commissioner for Climate Action. “Battery production is a vital priority for the clean energy transition in the transport and power sectors and beyond.
“The European Commission is committed to mobilising much-needed investments in new and transforming technologies to support a resilient European battery ecosystem. We are combining different financial instruments to target our support in the most efficient way and maximise private investment. The partnership with the EIB will help EU businesses and innovators to reap the benefits of innovative net-zero technologies and create the jobs of tomorrow.”
The partnership also aligns with broader strategies like the EU Green Deal and Net-Zero Industry Act, emphasising the development of a robust battery ecosystem to support climate neutrality goals.
Battery technology
“Investing in battery technology is not just an opportunity; it’s a necessity for Europe’s sustainable future,” said Thomas Östros, EIB vice president in charge of energy.
“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.” Read more here.
