Its primary goal is to reduce excessive EU dependence on foreign suppliers.
EIT InnoEnergy and the European private equity and venture capital investment company, Demeter Investment Managers, have decided to create a fund aimed at developing the European battery raw material supply chain. The starting amount of the fund will be EUR 500 million, the EIT InnoEnergy HUB announced.
The statement says: the creation of the fund is justified by the rapidly growing European demand for batteries, as there are significant gaps in the extraction side of the supply chain of the EU’s battery raw material (mining, processing). It was highlighted: in accordance with the requirements of the EU Act on Critical Raw Materials (CRMA) – the primary goal of which is to reduce excessive EU dependence on foreign suppliers – the fund supports the increase of domestic capacities. It focuses on strategically important battery raw materials such as lithium, nickel, cobalt, manganese and graphite.
It was announced: Demeter is participating in the project as a fund manager and joint venture partner, relying on its experience in the field of green technologies and infrastructure.
It was emphasized that at least 70 percent of the investments from the EBA Fund will be used for projects that increase the EU’s domestic production from mining, processing, refining and recycling. The remaining 30 percent will be allocated to increase the supply of raw materials from the EU’s raw materials partnership countries, such as Canada, Namibia and Argentina. The EBA Fund aims to support projects in meeting the strictest environmental protection standards.
EIT InnoEnergy works on the implementation of the energy transition and is the leading innovation center for sustainable energy developments. It offers the technology, business model innovation and skills needed to accelerate the Green Deal and deliver on Europe’s decarbonisation and re-industrialisation goals, while also improving energy security.
Demeter Investment Managers is one of the European experts in venture capital, private capital and infrastructure investments in the field of energy and ecological transition. Its funds invest between 1 and 50 million euros to support companies operating in the sector at all stages of their development, helping innovative start-ups as well as small and medium-sized enterprises or infrastructure projects.