EIT InnoEnergy and Demeter Investment Managers, a major European private equity and venture capital firm, announced the launch of a fund dedicated to the development of a resilient and diverse battery raw material supply chain for Europe.
Creating a resilient European battery industry
To secure a thriving and resilient European battery industry, we must intensify our efforts in domestic battery raw materials production. 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.Diego Pavia, CEO of EIT InnoEnergy
Lead by industry experts
Demeter will act as fund manager, bringing its wealth of experience in greentech and infrastructure. EIT InnoEnergy will tap into its sector heritage, evidenced by leadership of EBA250 since its inception in 2017, along with broader early-stage investment expertise to identify and support risky projects. Societe Generale will act as the exclusive financial advisor for the capital raising.
The battery industry is of strategic importance and a key battleground for global competitiveness. Therefore, it is vital to continuously up our game, with securing battery raw materials being the single biggest task ahead. Today’s innovative announcement shows that we mean business – on both, boosting our domestic European capacities and bolstering diversification via trade and cooperation with reliable partners. We need to be strategic, bold, agile.Maroš Šefčovič, Commission Executive Vice-President
About the Fund
At least 70% of investments from the EBA Materials Fund will be dedicated to projects increasing EU domestic production from mining, processing, refining and recycling in EU and neighbouring countries. The remaining 30% will focus on increasing raw material supply from EU Raw Material Partnership countries, such as Canada, Namibia, and Argentina.
Demeter is delighted to launch this initiative together with EIT InnoEnergy, in a critical segment for European countries to succeed in energy and ecological transition. Demeter will bring its recognised expertise in green investments and its methodologies for ensuring those investments meet the highest ESG standards.
Antoine Troesch, Managing Partner at Demeter