EIT InnoEnergy, an innovation engine for sustainable energy across Europe, and Paris-based Demeter Investment Managers have teamed up to launch a fund focused on building a robust and diverse battery raw material supply chain for Europe.
The fund, targeting €500M, extends the European Battery Alliance’s efforts to strengthen the European battery industry.
Focused on addressing gaps in the EU’s battery material supply chain, the fund aligns with the Critical Raw Materials Act, aiming to reduce reliance on foreign sources by enhancing domestic capacities for key battery materials like lithium, nickel, cobalt, manganese, and graphite.
“To secure a thriving and resilient European battery industry, we must intensify our efforts in domestic battery raw materials production,” said Diego Pavia, CEO of EIT InnoEnergy.
“While it’s encouraging to see a growing list of ambitious initiatives and financial stimuli from public and private players, their focus is typically on mature projects (post-Final Investment Decision).”
“Yet these initiatives need a deal flow of de-risked projects, and therefore we also need a focus on early-stage upstream projects (scoping, PFS and DFS), committed to a sustainable, traceable and transparent battery materials supply chain – and that’s exactly what the EBA Materials Fund will deliver,” adds Pavia.
Demeter will manage and partner in the €500M ‘EBA Strategic Battery Materials Fund’. EIT InnoEnergy will bring sector expertise, and Societe Generale will serve as the exclusive financial advisor for capital raising.
Demeter Investment Managers invests from €1M to €50M in energy and ecological transition ventures. With a team of 38 individuals across Europe and €1.3B managed, they have executed 230 investments over 17 years.
The EBA Strategic Battery Materials Fund’ allocates at least 70 per cent of investments to projects enhancing EU domestic production, spanning mining, processing, refining, and recycling in the EU and neighbouring nations.
The remaining 30 per cent targets boosting raw material supply from EU Raw Material Partnership countries, including Canada, Namibia, and Argentina.