Europe focuses on battery innovation as a pillar of the future of the automotive sector
The European Commission has today presented the Industrial Action Plan for the European Automotive Sector, a strategic plan to future-proof the European car industry during a time of significant transitions. This plan focuses on five core areas: innovation and digitalisation, clean mobility, strengthening supply chains, skills and social impact, and fair competition conditions.
One of the crucial pillars in this strategy is the battery industry. Batteries form the backbone of transport electrification and the energy transition, representing 30-40% of the added value of an electric vehicle. The EU recognises that a strong, competitive battery industry is essential to reduce dependency on foreign suppliers and to strengthen Europe’s position in the global automotive sector.
To achieve this, significant investments are being made, including €3 billion from the Innovation Fund for battery production, an additional €1.8 billion in support for European production capacity, and €362 million for battery research through Horizon Europe. New regulatory measures are also being introduced, such as European content requirements for battery cells and a ban on the export of critical battery materials to non-OECD countries, to strengthen the circular economy and Europe’s raw material supply.
For the Netherlands, and particularly for Battery Competence Cluster - NL (BCC-NL), this action plan offers enormous opportunities to play a pioneering role in battery technology and production within Europe. This is the moment to jointly invest in an innovative and circular battery value chain, laying the foundation for a strong, self-sufficient, and sustainable European automotive sector.
The Core of EU Battery Policy
To strengthen the European battery industry, the EU is focusing on five key areas:
- Scaling Up European Battery Production
With an investment of €3 billion from the Innovation Fund for the production of EV battery cells, with the first tranche of €1 billion being released in December 2024. Additionally, between 2025-2027, a further €1.8 billion will be made available to support production in Europe.
- Research and Innovation in Battery Technology
The EU is allocating €362 million through Horizon Europe for R&D in next-generation batteries, battery management, and recycling. Smart battery solutions and circular innovations are a key focus.
- Strengthening the Supply Chain and Raw Material Supply
Europe aims to reduce its dependence on raw materials from third countries through the Critical Raw Materials Act (CRMA). This means better regulation of battery raw materials such as lithium, nickel, and cobalt within Europe, and prioritising strategic mining and refining projects.
- Circular Economy and Battery Recycling
To make the battery industry more sustainable, the EU is banning the export of ‘black mass’ (critical battery waste) to non-OECD countries and exploring additional funding for recycling facilities.
- Clear Regulations and Market Conditions
European content requirements for batteries and components will be introduced to ensure a larger proportion of battery production takes place within Europe. Standards for CO₂ footprint and design will also be harmonised to create economies of scale and promote sustainable production.
With the programme from the National Growth Fund, Material Independence & Circular Batteries, BCC-NL plays a key role in the transition to a sustainable and circular battery industry.
Call to Businesses and Innovators
The EU has laid out the framework – now it’s up to us to get involved. Would you like to contribute to the growth of the battery industry in the Netherlands and Europe? BCC-NL invites businesses, knowledge institutions, and investors to collaborate on the next generation of batteries.
Get in touch and become part of the future of battery innovation!