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European Union pledges €3.2 billion for lithium-ion R&D

by Greg Klein | December 10, 2019

Seven EU states will subsidize 17 companies working towards greater self-reliance in clean energy resources and technology. Announced this week, the project will provide up to €3.2 billion for research and innovation in European battery production.

The money will back R&D into liquid electrolyte and solid state Li-ion batteries “that last longer, have shorter charging times, and are safer and more environmentally friendly than those currently available,” the commission stated.

European Union pledges €3.2 billion for lithium-ion battery supply chain

Four areas of interest include sourcing raw materials; developing innovations for stationary energy storage, power tools and other applications as well as vehicles; creating battery management software and algorithms as well as innovative test methods; and recycling and re-using battery materials.

“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, EU commissioner in charge of competition policy. She added the program will deliver “positive spill-over effects across industrial sectors and regions. The approved aid will ensure that this important project can go ahead without unduly distorting competition.”

A claw-back provision requires companies to return part of their subsidies if project revenues exceed forecasts.

The seven funders comprise Belgium, Finland, France, Germany, Italy, Poland and Sweden. The 17 direct participants, including small and medium-sized enterprises, will co-operate with each other and over 70 other European partners. Different sub-projects will have different deadlines but the overall program has 2031 scheduled for completion.

Despite lithium’s price drop, an October forecast from Benchmark Mineral Intelligence saw demand reaching 2.2 million tonnes by 2030, compared with current supply projections of 1.67 million tonnes. Benchmark attributed increasing demand to an EV penetration rate rising from 4.3% in 2020 to 30.7% in 2030.

In September Benchmark reported 99 battery megafactories in the pipeline globally, with over 2,000 GWh of capacity expected by 2028.

 

European Union pledges €3.2 billion for lithium-ion battery supply chain

A chart shows the project’s four areas of interest, the participants
and their supporting countries. (Image: European Union)

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