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In a significant move towards fortifying the European battery industry, the ‘EBA Strategic Battery Materials Fund’ is introduced with a target size of €500 million. The fund, building upon the success of the European Battery Alliance (EBA250), responds to the surging demand for batteries in Europe, revealing vulnerabilities in the upstream of the EU’s battery material supply chain.
Diego Pavia, CEO of EIT InnoEnergy, emphasized the need to intensify efforts in domestic battery raw materials production for a thriving and resilient European battery industry. While applauding ambitious initiatives, Pavia stressed the importance of focusing on early-stage upstream projects committed to sustainability and transparency. The EBA Materials Fund aims to deliver precisely that, providing a deal flow of de-risked projects.
Leadership and Expertise: Demeter takes on the role of fund manager, leveraging its experience in greentech and infrastructure. EIT InnoEnergy, with its sector heritage and leadership of EBA250 since 2017, contributes early-stage investment expertise to identify and support risky projects. Societe Generale serves as the exclusive financial advisor for capital raising.
Commission Executive Vice-President Maroš Šefčovič, responsible for the European Green Deal and the European Battery Alliance, emphasized the strategic importance of the battery industry and the need to secure raw materials. He commended the fund’s innovative approach in boosting domestic capacities and diversifying through trade and cooperation with reliable partners.
Fund Objectives: At least 70% of the EBA Materials Fund investments will be dedicated to projects increasing EU domestic production, covering mining, processing, refining, and recycling in the EU and neighboring countries. The remaining 30% will focus on increasing raw material supply from EU Raw Material Partnership countries, including Canada, Namibia, and Argentina.
The fund is committed to supporting projects in achieving the highest environmental standards, aligning with the EU Battery Regulation and the Critical Raw Materials Act. It aims for one of the highest ESG classifications as an Article 8 fund under the EU’s Sustainable Finance Disclosure Regulation (SFDR).
Antoine Troesch, Managing Partner at Demeter, expressed delight in launching the initiative, highlighting its critical role in supporting European countries in energy and ecological transition. Demeter’s expertise in green investments ensures adherence to the highest ESG standards.
This strategic move signals a dedicated effort to secure the future of the European battery industry and aligns with broader environmental and sustainability goals.
