Is the EU Industrial Policy on batteries effective?

84 Overall, we conclude that the Commission’s promotion of an EU industrial policy on batteries has been effective, despite shortcomings on monitoring, coordination and targeting, as well as the fact that access to raw materials remains a major strategic challenge for the EU’s battery value chain.

What does the EU's energy policy mean for batteries?

In 2018, as part of the EU’s industrial policy, the Commission designated batteries as a strategic imperative for the EU’s clean energy transition, and launched an action plan aimed at making Europe a global leader in sustainable battery production and use.

What percentage of lithium-ion batteries are used in the energy sector?

Despite the continuing use of lithium-ion batteries in billions of personal devices in the world, the energy sector now accounts for over 90% of annual lithium-ion battery demand. This is up from 50% for the energy sector in 2016, when the total lithium-ion battery market was 10-times smaller.

How can the EIB support European battery manufacturing at scale?

As regards financial support for European battery cell manufacturing at scale, the Commission had, in cooperation with the EIB, envisaged creating a dedicated batteries funding and financing portal to facilitate stakeholder access to appropriate financial support and assist in the blending of financial instruments.

Does the EU monitor battery production?

33 Crucially, the Commission does not monitor EU production of battery cells sufficiently. Eurostat currently reports on quantities (units) of batteries produced44 regardless of their energy capacity in Watt-hours, which is the essential market indicator.

How much money does the EU budget give to the battery industry?

Overall, since 2014, the EU budget provided at least €1.7 billion in grants and loan guarantees, which add to state aid of up to €6 billion to the European battery industry notified by member states and authorised by the Commission between 2019 and 2021.