EU approves €3.2bn fund for battery development

The European Commission has given the green light to €3.2-billion of state aid from seven member state for the research and development of battery technology. The announcement comes as part of Brussels continued push to find strategic areas where it can help companies expand and develop new technologies.

The approval was granted for projects that support research and innovation in batteries in Belgium, Finland, France, Germany, Italy, Poland and Sweden.

The Commission said that it expects the funding to lead to a further €5-billion in private investments. The project is expected to be completed by 2031.

“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, Executive Vice-President responsible for competition.

“The approved aid will ensure that this important project can go ahead without unduly distorting competition,” she said.

Maroš Šefčovič, vice-president for interinstitutional relations and foresight, said: “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.”

Overall, the “ambitious and risky” project involves 17 participants, mostly industrial players including several small and medium-sized businesses, who will conduct research and development right across the battery value chain from mining and processing the raw materials, production of advanced chemical materials, the design of battery cells and modules and their integration into smart systems, to the recycling and repurposing of used batteries.

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