The expansion of a German and European battery sector

The tremendous rise in demand for battery cells in Europe, as well as the associated, significant development and expansion of a German and European battery sector, is fueled primarily by two interconnected reasons.
The first is driven by ambitious (EU) climate objectives and the related emission reduction requirements, and the second is driven by innovation support measures in the form of complementary industrial policy financing initiatives. In this sense, the federal government, through the BMWK (The German Federal Ministry for Economic Affairs and Climate Action), is using an ecological approach

The financing effort focuses on Important Projects of Common European Interest (IPCEIs) in the field of battery cell production, which comprise the industrial core of the battery value chain and are the main point of BMWK support. The IPCEI grant is intended to stimulate European battery cell manufacture. This is because responsibly made batteries are a supporting pillar of the European Green Deal, which aims to make the EU climate-neutral by 2050 by decarbonizing transportation and improving the usability of renewable energy sources.

IPCEI stands for “Important Projects of Common European Interest.” An IPCEI grant is a type of funding provided by the European Union (EU) to support projects that are of significant importance to the EU and its member states. These grants are designed to support research, development, and innovation in areas that are considered to be of strategic importance to the EU, such as energy, environment, and digital technologies. IPCEI grants are typically awarded to consortia of companies and research organizations that are working together on a specific project. The grant provides funding for the project, which can help to accelerate its development and bring it to market more quickly.

To achieve carbon neutrality, technological improvements in the battery value chain are required, which will position Europe as a global leader. While demand for electric cars, including the traction batteries they require, has been steadily increasing for years, battery manufacture has been mostly centred in Asia (particularly China).

The IPCEI battery projects are large-scale industrialisation initiatives involving more than 9 billion euros in private investment in significantly more than 100 GWh of battery manufacturing capacity and the creation of around 18,000 new jobs. These initiatives act as seed crystals for the landscape of research institutions as well as suppliers and customers, forming the critical mass of a new growing battery sector.

Beyond the IPCEIs—which, for their part, are anticipated to produce spillover effects and activities—it is also critical to network the research and business landscape in order to best support the IPCEIs in terms of innovation, skilled workers, supplier and customer integration, as well as to expose as many companies and research institutions in the battery sector to industrial applications as is possible. This goal has also been acknowledged by the BMWK, which has introduced financial efforts to go along with the IPCEIs. In particular, the expanding battery ecosystem is supposed to be stimulated by this.

Source: The importance of regional value creation structures in the battery industry | VDI/VDE Innovation

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production facilities for battery cell manufacturing in Europe that are planned, under construction or existing
production facilities for battery cell manufacturing in Europe that are planned, under construction or existing
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