December 12, 2024: A €4.6 billion ($4.8 billion) investment boost for a range of technologies including EV battery cell manufacturing was unveiled by the European Commission on December 3 — in addition to a €200 million loan guarantee.

The Commission said the move aims to encourage proposals for net-zero technologies that are key to ensure the competitiveness of European industry while meeting agreed climate goals.

The loan guarantee, to be provided by the Commission in partnership with the European Investment Bank, the EU’s lending arm, is specifically designed to spur fresh investment in Europe’s EV battery-making infrastructure.

Once again, advanced lead battery technology appears to be sidelined under the partnership, which prioritises “technological innovations beyond basic cell or pack assembly” but excludes mining and extraction projects.

However, the partners said the loan guarantee could benefit battery recycling R&D.

Wopke Hoekstra, commissioner for climate, net zero and clean growth, said the Commission’s partnership with the bank would strengthen the continent’s battery value chain, manufacturing capabilities, and recycling processes.

Batteries International reported last September that lithium ion batteries represented the EU’s largest trade deficit of €19 billion ($21 billion) in 2023, amid intense global manufacturing competition.

The li-on deficit was also up more than 20% compared to the previous year, the European Commission’s State of the Energy Union Report 2024 said.