EU approves €3.2bn research fund for battery development
The European Commission has approved a €3.2bn (£2.7bn) state aid fund from seven European Union countries for “ambitious and risky” research and innovation in battery technologies.
Belgium, Finland, France, Germany, Italy, Poland and Sweden will provide up to €3.2bn of funding for the project, which is planned to complete in 2031.
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The Commission said it expects to the countries’ contributions to unlock an additional €5bn in private investments.
The project will involve “ambitious and risky” research and development across all stages of battery development, it added, including the mining and processing of raw materials, production of advanced chemical materials, the design of battery cells and the recycling of used batteries.
“Battery production in Europe is of strategic interest for our economy and society because of its potential in terms of clean mobility and energy, job creation, sustainability and competitiveness,” said Margrethe Vestager, the Commission’s executive vice president responsible for competition.
“The approved aid will ensure that this important project can go ahead without unduly distorting competition,” Vestager added.
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The project will involve 17 direct participants – mostly industrial actors including small and medium-sized firms, the Commission said. Representatives from member states will monitor the project.
“Thanks to intensive efforts by seven member states, industry and the commission, Europe’s first major pan-European battery ecosystem is emerging, with lead projects in all segments of this strategic value chain,” said Maros Sefcovic, the Commission’s vice president for interinstitutional relations and foresight.