EU greenlights EUR 3.2 billion battery research project

Margrethe Vestager – Photo © European Union

(BRUSSELS) – The European Commission approved Monday under EU state aid rules a ‘Common European interest’ project jointly notified by seven EU Member States to support research and innovation in batteries.

The project approved by the Commission is an Important Project of Common European interest (“IPCEI”) jointly notified by Belgium, Finland, France, Germany, Italy, Poland and Sweden to support research and innovation in the common European priority area of batteries.

The project supports the development of highly innovative and sustainable technologies for lithium-ion batteries (liquid electrolyte and solid state) that last longer, have shorter charging times, are safer and more environmentally friendly than those currently available. The project involves ambitious and risky research and development activities to deliver beyond the state-of-the-art innovation across the batteries value chain, from mining and processing the raw materials, production of advanced chemical materials, the design of battery cells and modules and their integration into smart systems, to the recycling and repurposing of used batteries.

The seven Member States will provide in the coming years up to approximately EUR 3.2 billion in funding for this project, which is expected to unlock an additional €5 billion in private investments. The completion of the overall project is planned for 2031 (with differing timelines for each sub-project).

“Battery production in Europe is of strategic interest for our economy and society because of its potential in terms of clean mobility and energy, job creation, sustainability and competitiveness,” said the Competition Commissioner Margrethe Vestager: “Our Important Projects of Common European Interest smooth the way for public authorities and industries from several Member States to come together and design ambitious innovation projects with positive spill-over effects across industrial sectors and regions. The approved aid will ensure that this important project can go ahead without unduly distorting competition.”

The project will involve 17 direct participants, mostly industrial actors, including small and medium-sized enterprises (SMEs), some of which with activities in more than one Member State. The direct participants will closely cooperate with each other and with over 70 external partners, such as SMEs and public research organisations across Europe.

Following intensive technical discussions between the Commission and the relevant actors over a period of 3 months, the project was formally notified to the Commission for approval under EU State aid rules in October 2019. After notification, the Commission finalised its assessment and took its decision swiftly to ensure the fast and smooth implementation of the project.

The non-confidential version of the decision will be made available under the case numbers SA.54793 (Belgium), SA.54801 (Germany), SA.54794 (France), SA.54806 (Italy), SA.54808 (Poland), SA.54796 (Sweden) and SA.54809 (Finland) in the State Aid Register on the competition website once any confidentiality issues have been resolved.

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