EU, EIB support Europe’s battery manufacturing with €3b

The European Commission and the European Investment Bank (EIB) unveiled on Tuesday a €3 billion partnership to boost the EU’s battery manufacturing sector.

The initiative includes a €200 million loan guarantee from the EU Innovation Fund to the InvestEU programme and €1 billion in grants to support electric vehicle battery cell manufacturing projects.

The EIB plans to invest an additional €1.8 billion in the broader battery value chain, targeting advanced materials, component manufacturing, and innovative recycling techniques. This funding will bridge gaps between research and large-scale deployment, tackle market inefficiencies, and promote private investment.

Vice President Thomas Östros emphasised the importance of innovation in driving a sustainable, competitive battery ecosystem. European Commissioner Wopke Hoekstra highlighted battery production as crucial for achieving climate neutrality by 2050.

The initiative aligns with the EU Green Deal, Batteries Regulation, and Net-Zero Industry Act, bolstering Europe’s commitment to a circular economy and clean energy transition.

Attribution: EIB

Subediting: M. S. Salama