ASX-listed Euro Manganese Inc has welcomed the European Commission’s proposal for a new €3 billion (AUD 4.9 billion) fund dedicated to advancing the growth of the electric vehicle (EV) battery industry within the European Union (EU).
In a media release, the company expressed particular support for the emphasis on sustainability, traceability, and circularity in selecting beneficiaries.
The proposed funding, set to commence in 2024, will be channelled through the Commission’s Innovation Fund, incentivising investments in the EU’s battery manufacturing capacity.
A dedicated instrument within the Innovation Fund aims to provide support, potentially in the form of a fixed premium, to European manufacturers recognised for producing the most sustainable batteries.
This approach is designed to create a positive impact throughout the entire battery value chain, including the critical upstream raw material segment.
In response to the news, the European Battery Alliance (EBA250) has stressed the importance of EU incentives for upstream raw materials.
The alliance noted, “Further efforts on the upstream segments of the value chain are also required. Upstream activities such as raw and active materials should also be supported where lack of funding and long lead times affect, in particular, the processing and refining of raw materials.”
The proposed funding aligns with the EU Battery Regulation recently adopted to minimise the carbon footprint of batteries, mandating due diligence on the sustainable, ethical, and transparent supply of raw materials.
The introduction of the Battery Passport aims to encourage the production of batteries with the lowest social and environmental footprint globally.
Dr Matthew James, President & CEO of Euro Manganese, expressed his approval of the European Commission’s proposal, stating, “Euro Manganese welcomes this recent proposal from the European Commission, which will support EU battery supply chains, including upstream sustainable raw material and refining production in the EU.”
He also highlighted Euro Manganese’s readiness to deliver on sustainability, traceability, and circularity, underscoring the company’s position as a tailings recycling project and the sole manganese resource in Europe.
As a member of the European Battery Alliance and in collaboration with EIT InnoEnergy, Euro Manganese said it eagerly anticipates the rollout of the fund and looks forward to reaping the benefits of its implementation in advancing sustainable practices in the EV supply chain.
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