10 to 20 Battery Giga-factories Needed; EU Commission Calls for Industry-led Initiatives
BRUSSELS, Belgium – According to forecasts, the battery market in Europe could be worth up to 250 billion euros from 2025 on. To meet this demand alone, Europe would need 10 to 20 Giga-factories for battery cell manufacturing. Due to the required investment volume and pace, this industrial challenge cannot be let uncoordinated by the EU. The EU Commission continues to call for industry-led initiatives for which it is to create the political and financial framework for a successful implementation.
In October 2017, an initiative was launched by the Vice-President of the EU Commission Maroš Šefčovič, to build a Battery Alliance with all players in the European value chain.
The European Battery Alliance is a platform gathering the European Commission, EU Member States, the European Investment Bank, industry representatives and innovation actors in support of industry-led projects, with the aim to establish a competitive, sustainable battery cell manufacturing in Europe.
Huge and urgent challenge for Europe
Creating a competitive and sustainable battery industry with the 10 to 20 Giga-factories is a huge and urgent challenge for Europe that requires rapid actions in global competition. To trigger its development an action plan has been set-up. The main objectives of the action plan are:
- Ensuring access to raw materials
- Support the production of European battery cells on a large scale and a complete competitive value chain in Europe
- Strengthening the leadership role of industry through increased support for research and innovation in the EU
- Build and strengthen a highly skilled workforce for all parts of the battery value chain
- Support the sustainability of the battery cell manufacturing industry in the EU
- Ensuring coherence with the general EU and regulatory framework
Creating competitive battery value chain
The Commission continues to call on the EU actors involved in the European Battery Alliance to promote the industry-led initiatives and projects and implement it in order to create a competitive battery value chain in Europe. It also calls on the participating Member States to:
- Provide support for industry-led projects in the field of battery cell manufacturing or other parts of the supply chain whenever indicated by means of national instruments and/or appropriate EU funding mechanisms for which they are responsible (e.g. structural Funds);
- Simplify and accelerate approval and approval procedures (environment, manufacturing, construction) for pilot lines and relevant industry projects.
The newly founded TerraE holding company is setting-up a lithium-cell ‘Gigafactory’ production facility in Germany. For this the company has officially been established last August 2017 in Frankfurt am Main, Germany by a broad consortium of 19 companies and research institutes.
On the latest initiatives and calls of the European Commission, TerraE CEO, Holger Gritzka, says “It is highly welcome that the EU Commission has recognized the importance of a functioning, innovative and sustainable eco-system for the production of battery cells in Europe, and that the EU Commission will create the political and financial framework for a successful implementation. TerraE is already coordinating a consortium of 19 European companies and institutes with the aim of producing battery cells in large-scale production in Europe.”
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