EU approves €2.9 billion state aid for a second Pan-European research and innovation project along the entire battery value chain

Another milestone for the European Battery Alliance –  The European Commission approved today €2.9 billion public support by twelve Member States for a second Important Project of Common European Interest (IPCEI) to support research and innovation in all segments of the battery value chain.

The project, called “European Battery Innovation (EuBatIn)” was notified jointly by Austria, Belgium, Croatia, Finland, France, Germany, Greece, Italy, Poland, Slovakia, Spain and Sweden and will complement the first IPCEI on batteries that the Commission approved in December 2019. The funding of the twelve participating Member States is expected to unlock an additional €9 billion in private investments, i.e. more than three times the public support.

EuBatIn will be coordinated by Germany’s Federal Ministry for Economic Affairs and Energy (BMWi) and cover the entire battery value chain from extraction of raw materials, design and manufacturing of battery cells and packs, and finally the recycling and disposal in a circular economy, with a strong focus on sustainability. It is expected to contribute to the development of a whole set of new technological breakthroughs, including different cell chemistries and novel production processes, and other innovations in the battery value chain.

The project will involve 42 direct participants, including small and medium-sized enterprises (SMEs) and start-ups with activities in one or more Member States. The direct participants will closely cooperate with each other through nearly 300 collaborations envisaged, and with over 150 external partners, such as universities, research organisations and SMEs across Europe. The overall project is expected to be completed by 2028 (with differing timelines for each sub-project).

Companies eligible for funding include ACI Systems, Alumina Systems, BMW, Cellforce Group, ElringKlinger, Liofit, Manz, Northvolt, SGL Carbon, Skeleton Technologies and Tesla. The four workstreams and involved companies are shown here:

This announcement marks yet another milestone in the development of an innovative and sustainable European battery industry under the umbrella of the European Battery Alliance. In view of the growing importance of batteries for decarbonising the transport and energy system the creation of a safe, circular and sustainable battery value chain will be increasingly essential. This is also at the core of the Sustainable Batteries Regulation proposed by the Commission in December 2020 that we reported on.

We are now looking forward to contributions from this this important project that will further advance Europe’s leading position in the global battery ecosystem!

For additional information:

• Watch the recorded announcement of the European Commission.
• Read the official press release of the European Commission.
• Read the statement by Vice-President Šefčovič on the second IPCEI on batteries in the context of the European Battery Alliance.
• Consult the Project Management of the second IPCEI EuBatIn webpage.