The European Commission has approved €2.9 billion (£2.5bn) of public investment in a research project for batteries.
The so-called European Battery Innovation project, will cover the whole batteries’ ecosystem from the extraction of raw materials, design and manufacturing of battery cells and packs and the recycling and disposal in a circular economy.
The scheme is expected to contribute to the development of a set of new technological breakthroughs, including different cell chemistries and novel production processes, and other innovations in the battery value chain.
Twelve member states, including Germany, France, Spain, Sweden, Italy and Greece will support the project.
The public funding is forecast to unlock an additional €9 billion (£7.9bn) in private investments.
Executive Vice-President of the European Commission Margrethe Vestager said: “We now have the historic chance to build a greener, more digital and resilient Europe. To tackle climate change, we have to transform how we power our world, how we heat our homes – and how we travel and move between places.
“EVs will play a key role in this. They’re increasingly present on our roads, and sales have continued to rise even during the corona crisis. Innovative batteries are one of the key factors for the success of EVs. They can make up about a third of the total price and determine how far cars can travel.”