The European Investment Bank (EIB) has granted a €125 million (£112m) loan for a new facility in Poland, which aims to meet the growing demand for rechargeable lithium-ion batteries for electric vehicles .

The Belgian global materials technology and recycling group, Umicore will use the funds to finance the facility, which will supply cathode materials, a key component for lithium-ion battery cell manufacturers.

The EIB loan will cover approximately half of the project costs in the first phase.

Teresa Czerwińska, EIB Vice-President, said: “The trend towards the electrification of the automotive industry is gaining ground and in this context it is important to develop a European capacity across the full value chain of EV battery production”.