The European Investment Bank (EIB) has confirmed it will provide more than €1billion (£892m) in 2020 to support battery projects as part of the European Battery Alliance (EBA).
The EBA, founded in 2017 by the European Commission, is aimed at creating a competitive battery cell manufacturing and sustainable value chain across Europe.
The funding will also support the development of new materials, improved battery management systems and recycling.
Andrew McDowell, EIB’s Vice-President in charge of energy, said: “The Covid-19 crisis has highlighted Europe’s vulnerability to interruptions in the supply of critical materials and technologies. As the green energy transition accelerates, creating a European battery industry is vital to protect Europe’s competitive position in the world economy.
“With the support of the European Battery Alliance, the European Investment Bank – the EU Bank – is significantly stepping up our financing of all stages of the battery value chain, from research and development, raw materials extraction and processing through to battery production, e-charging infrastructure and recycling.”
An independent battery ecosystem is expected to speed up Europe’s green transition, help decarbonise the economy and further develop low carbon solutions such as electric vehicles.