Issue 01/2024 | Continuous Expansion of the European Battery Ecosystem
Editorial
Welcome battery enthusiasts!
There have been lots of good news to celebrate in recent weeks on the road to success of the European battery ecosystem, which is precisely why 2024 is also the ideal year for a joint interim analysis and readjustment of the overarching strategy.
Most of the European countries are contributing innovative projects and actively participating in the further development of battery competitiveness. With Norway, Portugal, Switzerland and Slovenia, we were delighted to welcome new IPCEI partners as associated projects. The companies from these countries contribute significantly to the technological spectrum. The challenge now is to integrate these new partners through targeted networking.
An ideal expansion of the European expertise landscape will also result from all the recent concrete announcements of major new settlements - Northvolt in Heide, Germany is just one example. In response to the US IRA, other European countries will also intensify their funding activities and launch new projects. All this is very promising. However, the European strategy needs to be updated. We are operating in an increasingly vital competitive environment and we have our own problems: a shortage of skilled labour, material bottlenecks and funding gaps are just some of them. For the necessary coordination process, all stakeholders are meeting this year in a wide variety of formats, which we would like to draw attention to in this newsletter. The IPCEI companies will be meeting in March in Bologna, Italy for a strategic summit. We will report on the results of this specific meeting shortly and invite all of you to further consultations. Let's take joint steps towards the European success of the battery industry in 2024!
Uwe Seidel and Stefan Wolf
Programme Management IPCEI Battery, VDI/VDE-IT
Short study: Mechanical and plant engineering as a strategic component of the European battery ecosystem – Cooperation as a key to success?
The European battery market is growing and so is the demand for battery equipment. So far, European mechanical and plant engineering has only been able to establish itself as a supplier to the emerging battery industry in Europe to a limited extent compared to its Asian competitors. In addition to a lack of references in the battery sector, the European mechanical and plant engineering industry has little experience in the manufacture of turnkey systems for the battery industry. One way of encountering the existing competitive disadvantages is the formation of cooperations between equipment manufacturers.
To assess the current situation in Germany, interviews were conducted with machine and plant manufacturers as well as battery cell manufacturers. The key finding of this study is that cooperation between machine and plant manufacturers can offer advantages in competition with Asian manufacturers. These advantages include the synchronization of interfaces, synergy effects and the development of know-how through joint research and development, but also the ability to offer larger system technology in the turnkey sector more quickly.
The short study will be available for download shortly >>
IPCEI EuBatIn Member States - projects and accompanying measures
In every issue of European Battery Innovation Quarterly, the IPCEI news section contains briefs on the IPCEI European Battery Innovation member states. Below, you find a short member state profile, with information relating to the IPCEIs and battery ecosystem.
To find out more about the member states and projects, explore the European IPCEI batteries map >>
Italy: IPCEI projects and accompanying measures
Policy actions for the batteries sector in Italy address innovation and industrial development on the entire value chain.
Under the IPCEI umbrella, the Italian Ministry of Enterprises and made in Italy is funding five companies in the IPCEI On Batteries, and ten companies in the IPCEI EuBatIn, with two associated Research Organizations (RTO) entitled to financing. The Italian companies contribute to all the IPCEI work streams on batteries: innovative technologies for raw and advanced materials, cells and modules, battery systems, repurposing, recycling and sustainability.
The battery sector is at the core of the Italian innovation and industrial agenda. 500 million euros have been allocated to battery R&D and industrial development within the Italian Recovery and Resilience Plan. The aim is to increase the production capacity of batteries by at least 13 GW/year. To that end, public support is provided under the Development Contracts. Within the mentioned aid framework, a major case is the ACC gigafactory investment project in Termoli, under State Aid evaluation by the European Commission.
It is also worth mentioning a specific intervention introduced within the revised NRRP for production system support for ecological transition, Net Zero technologies, and competitiveness and resilience of strategic supply chains. The intervention, with an overall budget of 2.5 billion euros, shall also support investments in the battery industry.
For additional information on the battery activities, reach out to the IPCEI Batteries team >>
The two IPCEI Batteries
IPCEI On Batteries: Status Quo
On November 13 2023, the General Assembly of the IPCEI on Batteries was held in Bordeaux, France, in a busy city welcoming the Battery Innovation Days. The IPCEI Member States, companies and European Commission representatives took stock of the progress on the IPCEI projects and discussed opportunities and challenges for the emerging European battery industry. The European Court of Auditors presented the key takeaways from its report "The EU’s industrial policy on batteries". Participants shared views to reinforce strategic autonomy and foster a circular economy in the battery value chain. It was also the opportunity to bring together the Région Nouvelle-Aquitaine battery ecosystem with the participation of local start-ups and a visit of the ACC R&D center.
IPCEI EuBatIn: Associated Partners
During the recent General Assembly of the IPCEI EuBatIn, a strategic decision was made to implement an expanded partner structure. This allows European projects from companies or research and technology organizations (RTOs) to apply for associated partnerships through their respective member states. Associated partners gain the privilege to participate in key events, including the General Assembly, IPCEI EuBatIn Conference, and Workstream Meetings, as guests.
The primary objectives of this new partner structure are to foster spillover effects, enhance dissemination, and magnify the impact of IPCEI EuBatIn initiatives. Since then, in two waves, a total of 16 new associated partners have joined IPCEI EuBatIn, representing countries such as Austria, Switzerland, Norway, Portugal, France, Slovenia, and Italy. This influx strengthens the IPCEI initiative and reinforces collaboration between European companies and RTOs. Each new partner brings crucial skills and capabilities to collaborative projects with direct partners in the IPCEI.
These associated partners have been carefully selected by their member countries and receive national funding for their projects, further contributing to the overall success and impact of the IPCEI EuBatIn initiative.
A list of all IPCEI Partners can be found on the IPCEI Batteries website >>
Market analysis Q4 2023: Competition is good for business
Worldwide, the demand for batteries increased in 2023. The installed energy capacity in electric vehicles equalled almost 485 GWh in 2023 until September, which is an increase of 43% year-over-year. Even though electric vehicles and batteries continue to experience double-digit percentage growth in Europe, projections for future trends are currently muted as decreasing demand is anticipated in some instances. As a result, medium-term expansion targets are corrected downwards or delayed.
With the Inflation Reduction Act, which came into effect in the middle of 2022, more than 110 billion USD were invested into the creation of a local – i. e. North American – battery value chain. European companies are seizing the opportunity to build production sites in North America as well. However, these market players remain committed to their expansion strategies in Europe as well, aiming to foster the development of local value chains in both Europe and North America. Part of these value chains are the production of battery cell casings and aluminium as well as copper foils. This market update shows where the producers of these components are located in Europe and what expansions plans are currently known.
The market analysis is available for download in the Media & Publications section >>
European Funding Landscape: TCTF in Germany and Europe
Keen observers of the battery ecosystem may have noticed that the early days of 2024 held some important news for the European funding landscape. On January 8, the European Commission approved the first individual aid under section 86 of the Temporary Crisis and Transition Framework (TCTF), sometimes referred to as the “matching clause”. This allowed Germany to support Northvolt with 902 mio € in the construction of a new gigafactory. In doing so, the Commission enabled Germany to leverage the TCTF’s potential to provide a soundalternative to the Inflation Reduction Act (IRA), which has led companies to pledge of billions of dollars in green investments in the United States.
There are variable business cases for the production of batteries, components and materials in Europe. The question is whether the measures taken are sufficient to stop the outflow of investment captial from Europe so that the development of a resilient and sustainable battery value chain in Europe is not jeopardised. Our deputy programme manager Christian Martin explored this question during a talk at the Batteries Event in Lyon, France, in October, and it continues to be a topic of intense discussions among our European partners.
On behalf of the German Federal Ministry for Economic Affairs and Climate Action, a team of more than 60 people works on the successful development and consolidation of a European battery ecosystem. Find out more in the Battery Insights with Uwe Seidel, Programme Management IPCEI Battery.
Accompanying Research: Cross-cutting topics - Digitalisation and Industry 4.0
The cross-cutting topic of "Digitalisation and Industry 4.0" addresses the current challenges and opportunities that arise in the digital transformation of companies in battery cell production. In this context, the focus is currently on data exchange and data management. Both strategic approaches and technical solutions for using data effectively without jeopardising integrity and security are considered. Data security and compliance issues are therefore also being addressed.
Most recently, a workshop on "Data Sharing and Digital Innovations" was held. The aim was to highlight ways in which companies can accelerate their digital transformation through targeted collaborations with partners or start-ups. The workshop comprised three presentations in which speakers presented their expertise and offered participants insights into current trends and best practices in the field of digitalisation and data sharing.
Global Battery Alliance - Update
The Global Battery Alliance (GBA), registered as a non-profit organization in Belgium/Brussels since 2022, has made significant strides in a short span. Over 150 organizations, including major players from Europe, the USA, and now prominent Chinese companies like CATL and CALB, have joined the GBA, reflecting increasing global collaboration in battery technologies.
The GBA has achieved notable successes, including the agreement and publication of three Rulebooks: GHG-Rulebook 2.0, Child-Labor Rulebook, and Human-Rights Rulebook. These frameworks establish standards for the ecological footprint, protection against child labor, and respect for human rights in battery production.
A significant milestone was the presentation of the first Proof-of-Concept of a battery passport pilot at the World Economic Forum in 2023. This underscores the GBA's commitment to transparency and traceability throughout the supply chain.
The GBA is financed by donations and membership contributions. This backing allows the organization to advance its mission and define globally uniform standards for battery sustainability.
Future work of the GBA will focus on creating additional Rulebooks, including Eco-design, Forced Labour, Rights of Indigenous People, and Biodiversity Loss. The organization aims to set global standards for battery production making a comprehensive contribution to global sustainability.
More information on the Global Battery Alliance can be found on the GBA website >>
Batteries Europe: New Factsheets on International Battery Innovation Systems
The national battery ecosystems of India and Canada have been analysed on new factsheets of Batteries Europe, the European think-tank on battery R&D&I established by the European Commission, which is currently preparing a review of global battery ecosystem, funding and international benchmarking on KPIs.
Under the link you can also find insights into battery R&D&I of China, USA, Japan, Australia, South Korea and the EU.
International monitoring is essential to understand global structures for supporting battery innovation, as well as policy objectives and instruments for creating successful battery ecosystems.
More information and additional factsheets can be found on the Batteries Europe website >>
Funding programme “Elektro-Mobil” Impulse Paper: “Testing of Use Cases (V2H, V2B, V2G) for Managing Charging Processes in Electro mobility”
The accompanying research “Elektro-Mobil” by the German Federal Ministry for Economic Affairs and Climate Action publishes a trendsetting impulse paper in German and English.
The impulse paper shows the range of implementations and tests for managed charging such as V2H, V2B and V2G in the funded projects of the Elektro-Mobil programme of the Federal Ministry for Economic Affairs and Climate Action. It provides an overview of the cutting-edge activities and results of research and development within the framework of the programme which have been tested both in real field trials and in laboratory setups. All of this is necessary for a fast grid integration of electro mobility.
The structuring of the use cases of the projects according to the current classification (Vehicle2Business (V2B), Vehicle2Grid (V2G), and others) as well as according to their spatial environment (home, workplace, etc.) is visualized. The use cases are also divided into unidirectional and bidirectional charging and are assigned to their functions between market-based price control and up to emergency control due to local power grid congestions. The standardization and regulatory requirements are identified. Furthermore, the future requirements and challenges of controlled charging are formulated.
Invitation: Smart Systems Meet Batteries
The European Battery R&I Community and EPoSS Working Group Energy cordially invite to their first common workshop “Smart Systems Meet Batteries” on 20 March, 2024, taking place online.
The event provides an overview of current activities in battery smart systems and the European strategic research agendas in this field. Furthermore, you will learn how to bring your priorities into Horizon Europe calls through EPoSS, Chips JU and BEPA. The preparation for the Horizon Europe Work Programme for 2025 starts right now. Be sure not to miss this opportunity!
Please find all information about the workshop available here >> |
Save the Date: Battery Live Talk
The team of the Accompanying Research of the IPCEI programme is continuing its successful monthly Battery Live Talk series on important questions that arise within the battery IPCEIs and the battery ecosystem. We look forward to insightful expert keynotes and interactive discussions with you on key topics such as supply chains, future battery technology and many more.
- February: Mechanical and Plant Engineering: A strategic component of the European battery ecosystem
- March: How do innovations in battery technology impact decisions towards standardized solutions?
- April: Digital Product Passports and Data Economy
The online event is free of charge and you are kindly invited to join! If you are signed up for this newsletter, you will receive an invitation in due time.
More information on upcoming events and on previous Battery Live Talks is available on this website >>
We will also announce the Battery Live Talks in our LinkedIn group European Battery Innovation and would be happy to welcome you there. Join the group to discuss and to network with more than 5,000 battery experts. Follow us on LinkedIn >>
Events, conferences & networking
Below, you can find a brief overview of upcoming events and conferences related to the topic of batteries. If you are organising a battery-related conference or other event that you would like to have included in this list of our next quarterly newsletter, please click here to send us an e-mail.
28 February – 1 March 2024 | Battery Japan |
29 February 2024 | |
6-7 March 2024 | InterBattery Seoul |
6-7 March 2024 | Maritime Battery Forum |
13-14 March 2024 | IPCEI Summit Bologna |
| 18 March 2024 | 3. Batterieforum Berlin-Brandenburg |
19 March 2024 | |
| 20 March 2024 | The new Strategic Research & Innovation Agenda for batteries |
| 20 March 2024 | Smart Systems Meet Batteries |
21 March 2024 | Battery Live Talk: Innovations and standardized solutions in battery technology |
10-11 April 2024 | Advanced Battery Power - Kraftwerk Batterie |
10-12 April 2024 | Vehicle-to-Grid, Vehicle-to-Home and Smart Charging |
| 10-12 April 2024 | Alkeemia Battery Forum 2024 |
22-27 April 2024 | Hannover Messe - Industryshow |
13-14 May 2024 | International AABC – Advanced Automotive Battery Conference |
11-13 June 2024 | European Sustainable Energy Week |
Legal Notice / Acknowledgements / Subscription
Acknowledgements:
VDI/VDE Innovation + Technik GmbH (VDI/VDE-IT) has been commissioned by the German Federal Ministry for Economic Affairs and Climate Action (BMWK) to act as the project management agency and to provide scientific support for the Europe-wide "IPCEI battery cell production" project.
Together with its partners from TÜV Rheinland Consulting and Technical University of Berlin the accompanying research team provides analytics, dissemination and networking activities for the German IPCEI projects.
VDI/VDE Innovation + Technik GmbH
Department Mobility, Energy and Future Technologies
Steinplatz 1
10623 Berlin
Germany
ENCBattery@vdivde-it.de
www.vdivde-it.de
Registergericht: Amtsgericht
Berlin-Charlottenburg, HRB 99568
Geschäftsführer: Peter Dortans, Dr. Werner Wilke
Aufsichtsratsvorsitzender: Dr.-Ing. Jens Reichel
Image credits
Symbols: AdobeStock / davooda, presentationload
