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EIT InnoEnergy, in partnership with Demeter Investment Managers, pledges to raise €500 million to support the development of a “resilient and diversified battery raw material supply chain” across Europe in a major new investment We have launched a fund.
The EBA Strategic Battery Materials Fund, announced today, aims to invest in Europe to increase supply capacity for strategic raw materials such as lithium, nickel, cobalt, manganese and graphite. All these materials are essential for clean technologies such as storage batteries and electric vehicles (EVs).
This investment vehicle will reduce the continent’s dependence on overseas supplies of key minerals and commodities for emerging clean technologies to minimize the risk of supply chain disruption as the EU moves towards achieving It is designed to support the requirements of the EU’s Critical Materials Act, which aims to reduce Achieve net-zero emissions by 2050.
At least 70 percent of the Fund’s investments will be directed to projects aimed at increasing the EU’s domestic production of key raw materials through mining, processing, refining and recycling within the EU. next to the company explained.
Meanwhile, the remaining 30 percent will go towards increasing the supply of raw materials from the EU. material Partner countries such as Canada, Namibia and Argentina.
The fund also aims to help projects obtain the “highest environmental standards” in terms of traceability, sustainability and circularity.they said.
The fund will be managed by private equity firm Demeter, with Société Générale acting as exclusive financial advisor for the financing.
Meanwhile, clean technology innovation incubator EIT InnoEnergy said it was providing early-stage investment expertise to “identify and support at-risk projects.”
“to” “To ensure the prosperity and resilience of Europe’s battery industry, we need to strengthen our commitment to domestic battery raw material production,” said Diego Pavia, CEO of Netherlands-based EIT InnoEnergy.
“While it is encouraging to see a growing list of ambitious initiatives and fiscal stimulus packages from public and private actors, their focus is typically on mature projects. There is a need for no project trade flows and therefore we also need to focus on efforts such as “early stage upstream projects that address sustainable, traceable and transparent battery material supply chains,” And that’s exactly what the EBA Materials Fund offers. ”
The fund was launched in 2019 in partnership with EIT InnoEnergy, with the aim of bringing businesses, investors and policy makers together to support the development of a £250bn battery market by 2025. It is based on the European Battery Alliance, which is supported by the EU. .
The move comes amid growing pressure on Western countries to strengthen their supply chains for cleat technology, which remains highly dependent on raw materials from China.
Furthermore, with the implementation of the Inflation Control Act in the United States, competition for green investments in areas such as batteries, renewable energy, and EVs is intensifying.
Against this backdrop, the UK Government yesterday announced its own plans for a Critical Imports Council, comprising key business figures and experts, tasked with supporting a new Critical Imports and Supply Chain Strategy. .
Maroš Šefčović, Executive Vice-President of the European Commission for the European Green Deal and the European Battery Alliance, welcomed the launch of the EBA Strategic Battery Materials Fund.
“The battery industry is of strategic importance and a key battleground for global competitiveness,” he said. “Securing battery raw materials is therefore the single biggest challenge going forward, and it is vital that we continue to improve our strategy. “We need to be strategic, bold and agile.” ”
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