The European Association for Electromobility (AVERE) has called upon EU decision-makers to swiftly introduce a ‘Battery Materials Bank’ to bolster the bloc’s domestic battery and materials value chain, a move seen as crucial for Europe’s clean energy transition.
In a recent paper, AVERE outlined the necessity of a new bank focusing on the processing and refining of critical raw materials, as well as the manufacturing and recycling of batteries. The proposed bank would operate on a well-designed auction mechanism, providing payments based on certified and verified output production. This system aims to attract more companies to Europe by offering transparent and predictable business framework conditions for investors.
AVERE suggests that the Battery Materials Bank should commence operations in the early 2020s, aligning with the EU’s objective to phase out internal combustion engine (ICE) vehicles by 2035.
Looking further ahead, AVERE proposes the establishment of a ‘European Critical Raw Materials Fund’ to complement the bank. This fund would operate under existing EU financial frameworks and tools, such as the EU Multiannual Financial Framework (MFF), the European Regional Development Fund (ERDF), the European Investment Bank (EIB), and the European Bank for Reconstruction and Development (EBRD).
The fund, which would be discussed separately during the MFF revision for the period 2028-2034, would ensure complementarity with national funds and directly contribute to the EU’s green industrialisation process and autonomy. Financing would come from additional EU-pooled money, utilising existing tools and governance frameworks.
“While the Battery Materials Bank is instrumental in changing the current financing paradigm in Europe to start strengthening the domestic raw materials and battery value chain, the Fund has a longer-term criticality,” AVERE stated in its paper. “It would consolidate the EU’s industrial competitiveness to ensure the transition to e-mobility fully takes shape in the coming years and decades.”
The proposals come amidst growing concerns about the EU’s dependence on imported raw materials and the need to secure a sustainable and resilient supply chain for the burgeoning electric vehicle (EV) market.
