Eindhoven-based 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.
The ‘EBA Strategic Battery Materials Fund’
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.
Diego Pavia, CEO of EIT InnoEnergy says, “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,” adds Pavia.
What to expect from the fund?
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.
The fund will champion projects adhering to top environmental standards, in line with EU Battery Regulation and evolving CRMA criteria. It aims for a leading ESG classification as an Article 8 fund, aligning with the EU’s Sustainable Finance Disclosure Regulation (SFDR).
Antoine Troesch, Managing Partner at Demeter says, “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.”
Brief about EIT InnoEnergy
Founded in 2010 and supported by the European Institute of Innovation and Technology, EIT InnoEnergy is a central force in the energy transition, driving sustainable innovation with technology, business model expertise, and skills.
The firm supports innovations in energy storage, transport, renewables, efficiency, industries, smart grids, and sustainable urban development.
InnoEnergy boasts a portfolio of over 200 companies, projected to generate €110B in revenue and save 2.1G tonnes of CO2e by 2030. These companies have collectively raised over €9.7B in investment.
The organisation spearheads three strategic European initiatives: the European Battery Alliance (EBA), the European Green Hydrogen Acceleration Center (EGHAC), and the European Solar Photovoltaic Industry Alliance (ESIA).
InnoEnergy has screened over 7,000 startups, launched 300+ products, and facilitated 370+ patents. With an ecosystem of 1200+ partners and 35 shareholders, it operates across Europe and in Boston, US.
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