EU Launches €500m Fund to Boost Battery Material Supply Chain

• EIT InnoEnergy and Demeter Investment Managers launch €500m EBA Strategic Battery Materials Fund, aiming to strengthen Europe's battery supply chain and decrease reliance on foreign sources.

EIT InnoEnergy and Demeter Investment Managers have launched the EBA Strategic Battery Materials Fund, a €500m fund aimed at developing a resilient and diverse battery raw material supply chain for Europe. The fund will focus on boosting domestic capacities for strategic battery materials such as lithium, nickel, cobalt, manganese, and graphite. The launch of the fund comes as European demand for batteries for electric vehicles and grid storage is increasing, revealing gaps in the EU's battery material supply chain. At least 70% of investments from the fund will be dedicated to projects increasing EU domestic production, while the remaining 30% will focus on increasing raw material supply from EU Raw Material Partnership countries.

The EBA Materials Fund aims to support projects that meet the highest environmental standards and adhere to sustainability criteria set under the EU Battery Regulation. The fund will contribute to the EU's efforts to decrease its reliance on foreign supply and create a resilient European battery industry. Societe Generale will act as the exclusive financial advisor for the capital raising. The launch of the fund demonstrates the EU's commitment to securing battery raw materials and boosting competitiveness in the global battery industry.

How will the EBA Strategic Battery Materials Fund boost Europe's battery raw material supply chain?

• The EBA Strategic Battery Materials Fund will provide a financial boost of €500m to develop a resilient and diverse battery raw material supply chain for Europe.
  
• The fund will specifically focus on increasing domestic capacities for strategic battery materials such as lithium, nickel, cobalt, manganese, and graphite.
• The launch of the fund is a response to the increasing demand for batteries for electric vehicles and grid storage in Europe, which has revealed gaps in the EU's battery material supply chain.
• At least 70% of the investments from the fund will be dedicated to projects that aim to increase EU domestic production of battery raw materials.
• The remaining 30% of investments will be focused on increasing the supply of raw materials from EU Raw Material Partnership countries.
• The projects supported by the fund will be required to meet the highest environmental standards and adhere to sustainability criteria set under the EU Battery Regulation.
• The fund will contribute to the EU's efforts to decrease its reliance on foreign supply and create a resilient European battery industry.
• Societe Generale will act as the exclusive financial advisor for the capital raising process of the fund.
• The launch of the EBA Strategic Battery Materials Fund demonstrates the EU's commitment to securing battery raw materials and boosting competitiveness in the global battery industry.