EU Allocates €852 Million to Boost Electric Vehicle Battery Production

The European Union has announced a funding allocation of €852 million as part of the 'IF24 Battery' program, aimed at advancing electric vehicle battery production. This funding will support six selected projects that, once operational, are expected to achieve an annual battery cell production capacity of approximately 56 GWh. According to a recent statement from the European Commission, this funding initiative is part of a broader effort to transform Europe into a clean, competitive, and resilient industrial base. By the end of 2024, the EU plans to launch a €1 billion 'IF24 Battery' program to further drive battery technology development and establish a green industrial system. The funding is sourced from the EU Innovation Fund, which derives its revenue from the EU Emissions Trading System (EU ETS). The six projects selected involve companies from France, Germany, Sweden, and Poland. Notable projects include: ACC's 'ACCEPT' project in France, which will add five new NMC (nickel manganese cobalt) battery production lines with a combined capacity of 15.7 GWh; Verkor's 'AGATHE' project in France, which aims to double the capacity of the Dunkirk battery plant from 8 GWh to 16 GWh; Porsche's subsidiary Cellforce's 'CF3_at_Scale' project in Germany, focused on building a 1.6 GWh high-performance battery production line utilizing high-nickel cathodes and silicon anodes; Leclanche's 'WGF2G' project in Germany, aiming to expand factory capacity to 2 GWh; NOVO Energy's 'NOVO One' project in Sweden, designed to support green transformation in the Gothenburg region; and LG's '46inEU' project in Poland, which plans to establish a production line for 46 series cylindrical cells with an annual output target of 115 million cells (approximately 11.5 GWh). The EU expects these projects to commence operations before 2030 and reduce greenhouse gas emissions by approximately 9.1 million tons of CO2 equivalent within the first decade of operation. Additionally, in June, the EU selected 13 overseas strategic raw material projects as part of its critical mineral supply chain security plan, requiring a total investment of €5.5 billion. In March, the EU also announced 47 domestic mining projects aimed at enhancing strategic raw material production capacity, collectively requiring an estimated investment of €22.5 billion. With the addition of these 13 overseas projects, the EU's global network of strategic raw material projects has expanded to 60, with a total estimated startup funding requirement of €28 billion. Through these strategic projects, the EU aims to enhance industrial competitiveness, particularly in sectors like electric vehicles, renewable energy, defense, and aerospace. These initiatives represent the initial results of the implementation of the Critical Raw Materials Act, which comes into effect in May 2024.