The EU rushed to approve 3.2 billion euros in subsidies to support battery research and development

The EU's antitrust authorities have approved 3.
2 billion euros ($3.
5 billion) in subsidies designed to help Europe bolster its lagging competitiveness
in the battery industry.

The €3.
2 billion subsidy will come from seven EU member states, namely Belgium, Germany, France, Italy, Poland, Finland and Sweden, to support research
into lithium-ion batteries across the continent.
Key areas of focus will include the extraction and processing of raw materials, the creation of advanced chemical materials, battery and module design, system integration, and battery recycling
.

The research project aims to support the development of innovative and sustainable liquid electrolytes and solid-state batteries, with a focus on safety and environmental concerns
.
Participants will work to promote the development of more durable batteries that will charge faster
than current products.

The European Commission said the injection would help generate an additional 5 billion euros in private investment
.
Battery production is an important industrial sector in Europe, and the push for subsidies is part of
a broader push by France and Germany to ensure Europe does not lag behind in the transition from natural gas combustible gases to electric engines.

In particular, Europe is concerned about increasing reliance on EV battery production, while Asia currently produces about 80% of the global EV battery and Europe produces only 3%.

The plan will be completed in 2031, with the individual sub-projects to be completed
on different schedules.

Margrethe Vestager, a senior official of the EU antitrust authorities, said: "Battery production in Europe is of strategic importance to our economy and society because of its potential in terms of clean mobility and energy, job creation, sustainability and competitiveness, fit for Europe
in the digital age.
”

Vestager said approving state aid would ensure the project ran
smoothly.
A designated important project of common European interest, the initiative has been described by the European Commission as "ambitious and fraught with risks" and aims to "enable transcendent innovation" across the battery value chain while creating strong industrial value
.

These new projects, which follow the launch of the European Battery Alliance in late 2017, will involve 17 industry players working
with more than 70 external partners.
They will work together to develop innovative technologies and supportive policies to ensure that the EU benefits
from growing demand for batteries.

"The battery value chain is a strategic value chain for Europe's future, particularly in terms
of clean and low-emission mobility," the committee concluded.
Vestager noted that the EU must step up investment and innovation to develop a comprehensive industrial policy strategy
.
There will be positive spillovers
across Europe.
Ultimately, all these activities will contribute to
the ecosystem development of the battery industry at the EU level.
”

While the European Commission's antitrust apparatus had previously been strictly opposed to state subsidies, in 2014 it gave more leeway to enable countries to support strategic transnational projects
.
Companies receiving subsidies will focus on four main areas: raw and advanced materials, batteries and modules, battery systems, and reuse, recycling and refining
.