All battery technologies could be eligible for a share of a €1.8 billion ($2 billion) financial lifeline to Europe’s struggling manufacturers, Batteries International understands.
The European Commission confirmed on December 16 it planned to push ahead with its new ‘battery booster’ scheme — first reported by this publication in September — with €1.5 billion of the total to be made available through interest-free loans for European battery producers.
One veteran lead battery industry insider told this publication that producers and trade bodies must now seize the opportunity to demand financial support is on offer for all chemistries — and not let Brussels return to “business-as-usual funding for anything but lead”.
Asked by Batteries International whether all EU-made batteries — such as lead, lithium and other technologies — could benefit from the support, a commission spokesperson said on December 17: “The eligibility and selection criteria for support are yet to be established.”
According to the commission, “additional targeted policy measures will support investments”, to create a European battery value chain and foster innovation and coordination across EU member states.
These measures aim to enhance the cost competitiveness of the sector, secure upstream supply chains and support sustainable and resilient production in the EU, contributing to the derisking from dominant global market players, the commission said.
The battery booster confirmation came at the same time as the commission proposed scrapping the EU’s effective ban on new combustion-engine cars from 2035. A new ‘automotive package’ would allow continued sales of some non-electric vehicles.
Currently, the EU requires new cars and vans from 2035 to have zero emissions. However, under the new proposal, that clean energy transition target would instead change to a 90% cut in CO2 emissions from 2021 levels, instead of 100%.
RECHARGE, which represents the European battery industry, said on December 17 it welcomed recognition of the strategic significance of the sector, but more was needed for the struggling European car industry and the nascent battery value chain.
Director general Ilka von Dalwigk said the battery booster was a “first step”.
“The European battery industry, like the EV sector, is facing challenges in sustaining itself amid aggressive low-price competition. Therefore, urgent EU action is needed to level the playing field.”
She said to future-proof the strategic autonomy and technology leadership of the EU’s automotive industry, the bloc needs a resilient and sustainable homegrown battery value chain.
Commission president Ursula von der Leyen said of the latest proposals that innovation, clean mobility and competitiveness had been the EU’s top priorities in “intense dialogues” with the auto sector and other bodies.
“As technology rapidly transforms mobility and geopolitics reshapes global competition, Europe remains at the forefront of the global clean transition.”
However, as evidenced by recent reporting and analysis by Batteries International, EU leaders are desperately scrambling to shore up the battery sector in the face of overwhelming global competition, from predominantly Asian players.
Last September, EU leaders were urged to act urgently to support European battery manufacturers — after being warned the industry faced costs that are some 20% higher that Asian competitors.
The call came at what was termed a high-level ministerial meeting of the European Battery Alliance (EBA) and the European Solar Industry Alliance in Brussels, including representatives of EU member states, the European Commission and the European Investment Bank.
Earlier, in an open letter to the European Commission, the CEOs of the Automotive Cells Company, battery maker Verkor, and Volkswagen’s PowerCo battery tech firm called for immediate, targeted measures to support a rapid ramping up of battery production across the continent.
The letter, titled Who Will Make Our Batteries? Europe’s Moment of Truth, was released by the EBA on September 5.
In terms of support specific to the lead battery sector, a senior member of the European Parliament said last year that the industry could breathe a sigh of relief and help energize Europe’s clean energy transition now one of the industry’s bogeymen — former EU Green Deal supremo Frans Timmermans — was out of office.
German Christian Democrat MEP Peter Liese, speaking in Brussels, said: “We should not go back to the Timmermans years.”
Liese diplomatically described Timmermans’ time as former European Commission executive vice president in charge of the Green Deal as “problematic”.
“Since Timmermans has left we’ve had a different focus,” he said.
