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European Commission approves $3.5 bln battery research project

A second Important Project of Common Europe Interest (IPCEI) in the battery supply chain unlocks state funds to support research and innovation in the battery space. 

January 27, 2021 by Dalila Ouerghi

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The European Commission (EC) has approved, under EU state aid rules, a second research and innovation project in the battery space, unlocking €2.9 billion ($3.52 billion) of state funds provided by a dozen European states to support research and innovation in the battery supply chain, it said on Tuesday January 26.

This is the second Important Project of Common European Interest (IPCEI) approved by the EC in the battery value chain.

The first IPCEI in this sector was approved by the EC in December 2019.

Twelve EU member states will provide as much as €2.9 billion in funding but there were expectations that an additional €9 billion would be pulled from private investments.

The project will see the involvement of 42 direct participants, including small and medium-sized companies, and start-ups, active in one or more EU member states. The completion of the overall project was expected by 2028.

“Thanks to its focus on the next generation of batteries, this strong pan-European project will help to revolutionize the battery market,” EC Vice-President Maros Sefcovic said.

“It will also boost our strategic autonomy in a sector vital for Europe’s green transition and long-term resilience. Some three years ago, the EU battery industry was hardly on the map; today, Europe is a global battery hotspot,” he added.

“By 2025, our actions under the European Battery Alliance will result in an industry robust [enough] to power at least 6 million electric cars each year,” he said.

The project will cover the battery supply chain at all stages in a sustainable manner, from sourcing raw materials to ultimate recycling.

The approval of this project was part of the EC’s attempts to establish a sustainable and innovative European battery industry taking account of the growing role that batteries will play in a variety of sectors, including transport and energy.

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