"Recycling key to future of battery manufacturing, say CEO and EU bank vice president
Following the financing of a new French innovation centre manufacturing electric vehicle batteries, EURACTIV France spoke about the opportunities and challenges for the sector with Ambroise Fayolle, vice president "
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"of the European Investment Bank (EIB), and Benoît Lemaignan, Verkor’s CEO and co-founder.
Read the original interview in French here.
The investment in French start-up Verkor’s innovation centre (VIC) is part of the European ambitions to develop a globally competitive batteries industry. The Union worked for this on the European Battery Alliance (EBA), an initiative launched in 2017 to secure the migration from fossil fuels to electric energy.
The EBA, which now encompasses more than 500 companies, is supported by the European Investment Bank (EIB), “the European bank for the climate,” according to the EIB’s Fayolle, who told EURACTIV France that batteries for electric vehicles are the “sector of the future”.
The EIB loaned €49 million to Verkor’s project, building on its catalogue of investments into other large-scale battery initiatives across Europe, including Northvolt in Sweden, to which the EIB granted a loan of €52.8 million in 2018.
“If these pilot projects meet the objectives, it will pave the way for larger financing,” Fayolle said.
Big ambitions
In the coming months, Verkor will start its first pilot production line for 150 MWh/year batteries at its VIC. The first integration of these batteries in vehicles is planned “as early as 2023”, according to Verkor’s CEO Lemaignan.
While the VIC will be located in Grenoble, the start-up is preparing the financing and design of a battery factory in Dunkirk, France, where construction is expected to start in the first quarter of 2023, allowing for the first production in 2024.
In the first year, 2 GWh/year of electric batteries will be manufactured and the target for 2027 is to achieve 16 GWh/year.
“That would be 200,000 or even 300,000 batteries, depending on the size of the batteries [from 50 to 90 kWh],” Lemaignan said.
Eventually, the start-up aims for a production capacity of 50 GWh/year.
Major investment needed
“In 2030, the demand for [battery] capacity in Europe will be of 1,000 GWh, or about 80 plants like the first unit (16 GWh/year) in Dunkirk,” said Lemaignan.
According to his calculations, the investment needed in the industry will be €120 to €130 billion over the next eight years. However, car manufacturers estimate that the income brought will be €60 billion per year, he added.
Under these conditions, “Europe has the means to become a leader in the battery industry,” Verkor’s co-founder explained.
EIB’s Fayolle added that following the war in Ukraine, “EU authorities want to accelerate the energy and ecological transition”, notably through the REPowerEU programme.
REPowerEU has committed to providing €210 billion of investment between now and 2027, “part of whic