Fostering the global leadership of the European battery industry in the
face of the US Inflation Reduction Act and other recent challenges.
Adapting Europe’s toolbox, with speed and simplicity, for a
business friendlier environment, today and tomorrow.
An unbalanced global playing field, impacting EU competitiveness
~4.000 Euros price difference per average eV
~4.000€ / eV
Still big gaps to address on domestic supply vs EU 2030 demand
Amplified by US IRA
10M eVs
7 emergency proposals for bridging the 2030 gap, and more
Objective: Actively support our champions’ growth, also in Europe
10M eVs
3. Prioritize battery value chain for redeploying existing programs (RRF, IF, ..) and
upcoming funding programs (sovereign fund)
7. Premium to performers above
regulation thresholds
=> 14€/kwh manufactured
1. Accelerate permitting
=> Six months maximum for all Strategic European Projects
5. Leverage EIB (and Invest EU) much more to boost
material sector, especially upstream
2. Simplify and expand IPCEI’s to upscale and industrialization
4. Couple revised state aid with reallocation of unspent EU structural funds
6. Ramp up skilled “fit for purpose” workforce
=> 2% ESF ear tagged for battery value chain
7 emergency proposals aligned with the Green Deal Industrial Plan CAPEX
Adapt toolbox, with speed and simplicity: Who, when, how much OPEX
EU/MS Funds (B€)
Emergency Proposal Actions Who When Existing | New
Emergency and temporary A. Industrial permits delivered within 6 months for Strategic European Projects 2023-
1 measures for permitting B. Steep upgrading of national or local permitting authorities
MS
2024 0,5
Adapt the IPCEI framework C. Increase the IPCEI support until bridging the market failure across the chain
2023-
2 for SMEs, industrialisation D. Simplify and accelerate the IPCEI process EU 6
E. Expand IPCEI scope from innovation into scaling up and industrialization 2024
and upscaling
Prioritize battery value chain F. Reprogramming and deployment of existing unallocated RRF and IF EU &
3 in (re)deployment of existing G. Design announced Sovereign Fund for early phases of industrial value
MS
2023 8 xx
and upcoming EU programs chains (i.e. Batteries)
Couple revised State aid H. Unspent European Structural and Investment Funds rechanneled EU & 2023-
4 rules with reallocation of I. Member States to deploy aid faster and better (e.g. tax breaks related to
MS 2025 15 xx
unspent EU structural funds the cost of energy or to the cost of employment)
J. EIB investing more, especially upstream in the value chain 2023-
Leverage EIB (and InvestEU)
5 to boost battery materials
K. Build EIB internal competence and create “fit for purpose” EIB products EU
2024 4
L. (Raw) materials projects supported by Technical Assistance
M. 2% of ESF+ funds earmarked and frontloaded by MS in 2023-2025 to deploy 2023-
6 Ramp up skilled workforce training programs in the battery value chain MS
2025 1
Premium to performers Turn EU sustainability ambition into competitive advantage
7 above regulation thresholds. N. Leverage (green public procurement) for sustainable batteries, charging, .. 2024-
O. Implement first stage of ‘EU sustainable production bonus’ (14€/kwh EU 25 xx
Public procurement to 2030
increase demand pull bonus for the most sustainable 200GWh of manufactured batteries)
EIT InnoEnergy
Kennispoort 6th floor
John F. Kennedylaan 2
5612 AB Eindhoven
The Netherlands
[email protected]
www.innoenergy.com
7th High-Level Meeting of the European Battery Alliance
main takeaways by the Chair Maroš Šefčovič and the Council Presidency
The 7th High-Level Meeting of the European Battery Alliance took place in Brussels on 1st March 2023,
chaired by European Commission Vice-President Maroš Šefčovič and organised in cooperation with the
Swedish Presidency of the Council of the European Union, represented by Sweden’s Deputy Prime
Minister and Minister for Energy, Business and Industry, Ebba Busch, and the State Secretary for foreign
trade and export and investment promotion, Håkan Jevrell.
The ministerial discussion, involving 27 Member States and Norway, focused on “Fostering the global
leadership of the European battery industry in the face of the Inflation Reduction Act and other
recent challenges”, based on a discussion paper by the industrial members of the European Battery
Alliance, coordinated by EIT InnoEnergy. It benefitted from the interventions of Thomas Östros, Vice-
President of the European Investment Bank, and Mark Bowman, Vice-President of the European Bank for
Reconstruction and Development.
The discussion acknowledged that the European Battery Alliance has been playing a pivotal role in
supporting progress towards the EU’s climate neutrality goal by 2050, in delivering on the 2018 strategic
action plan on batteries, and in allowing Europe’s battery industry to achieve key milestones. In 2022, these
included the rise in lithium-ion gigafactories from 26 to 30; the increase in the share of battery electric
vehicles sales from 21% to 28%, with several new models launched in Europe; and the recent political
agreement on the new EU Battery Regulation. In 2022, the total level of investment in Europe’s battery
ecosystem, which currently includes more than 160 industrial projects developed along the entire value
chain, reached more than EUR 180 billion. However, Europe is still facing several structural challenges,
such as the lack of 800,000 skilled workers by 2025, high energy, land, and permitting costs, as well as the
fact that Europe is now home of only 1% of the production of key battery raw materials.
The discussion took into account third countries’ support schemes for green technologies, most notably in
China, affecting the global level playing field. Moreover, while it is positive that the United States have
decided to enter in full speed the fight against climate change through the Inflation Reduction Act, some of
its provisions risk having a negative impact on the EU’s competitiveness and attractiveness for new
investments along the battery value chain. The dialogue remains open between the EU and the US to ensure
that our respective incentive programmes are fair and mutually reinforced.
The conclusions of the 7th High-Level Meeting of the European Battery Alliance stressed the need for
urgent evidence-based actions to ensure that the EU remains a global battery frontrunner as regards
innovation, production, circularity, sustainable competitiveness, and investment attractiveness.
The participants also stressed the need to strive for Europe’s technological leadership and develop a
comprehensive and forceful plan to strengthen the EU’s long-term competitiveness and productivity.
The situation at hand shows with clarity that the recipe for enabling European-based companies to lead the
way in the global battery production is not a quick-fix. Therefore, the Commission and EU Member States
are committed to a determined work on a broad array of issues and policy areas, including:
- Improving the EU regulatory framework, including permitting procedures and increased
circularity along the battery value chain, and reducing regulatory burdens for EU companies.
- Accelerating private investment and financing across the battery value chain, including a focus on
upscaling.
- Ensuring the availability of skilled workers for the battery industry.
- Using trade policy and international partnerships to strengthen the competitiveness of the EU
battery industry, in a manner compatible with our WTO commitments.
Saatja: SEFCOVIC Maros <
[email protected]>
Saadetud: 08.03.2023 10:50
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Koopia: NOCIAR Juraj <
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Teema: THANKS: 7th high-level meeting of the European Battery Alliance (1/3/2023)
Manused: image001.gif; Main takeaways_7th High-Level Meeting of EBA.pdf; Slides_7th
High-Level Meeting of EBA.pdf
Dear Ministers,
Please receive once again the expression of my utmost appreciation for your participation to the 7th High-
Level Meeting of the European Battery Alliance last week.
For the first time, all Member States plus Norway were represented at this ministerial discussion, which
also benefitted from the interventions of Thomas Östros, Vice-President of the European Investment
Bank, Mark Bowman, Vice-President of the European Bank for Reconstruction and Development, as well
as my colleagues Margrethe Vestager, Executive Vice-President for A Europe Fit for the Digital Age, and
Thierry Breton, Commissioner for Internal Market.
The success of the event clearly showcased the importance of the battery sector as a strategic one not
only for our economic resilience, but also for our efforts to achieve climate neutrality by 2050.
As agreed during the meeting, let me circulate the main takeaways by the Chair and the Council
Presidency – with special thanks to Sweden’s Deputy Prime Minister and Minister for Energy, Business
and Industry, Ebba Busch, and the State Secretary for foreign trade and export and investment promotion,
Håkan Jevrell. I also attach the slides presented during the meeting by the industrial members of the
European Battery Alliance, with thanks to the CEO of EIT InnoEnergy, Diego Pavia.
I look forward to our future discussions to ensure the best possible future for Europe’s battery ecosystem.
Best regards,
Maroš ŠEFČOVIČ
Vice-President of the European Commission
Maroš ŠEFČOVIČ
Vice-President of the European Commission
For Interinstitutional Relations and Foresight
BERL 11/029, Rue de la Loi 200
1049 Brussels, BELGIUM
Tel. +32 2 29 75 990
e-mail:
[email protected]
European Commission