Norway signs EU battery materials deal

Norway signs EU battery materials deal

Business news |
By Nick Flaherty

The EU has signed a deal with Norway to to develop sustainable land-based raw materials and battery value chains.

The strategic partnership on battery materials will develop a comprehensive framework for long-term cooperation in five areas, from the battery supply chain to finance and skills.

The deal will see the integration of raw materials and batteries value chains with joint investment projects, consortia and special purpose vehicles, including linking final users such as car makers with raw materials suppliers.

Norway is a mineral rich country with rare earths, magnesium, titanium, vanadium, phosphate rock and other resources under consideration. It also has a large processing capacity for many raw materials. In the past years, the battery sector has been growing significantly, with many new ventures across the full value chain. It also includes cooperation on research and innovation (R&I).

The EU has a well-established and growing market for batteries with an estimated demand in 2023 of 175 GWh that offers many opportunities for offtake agreements, joint ventures and joint R&I projects. The EU battery industry is the second largest in the world with existing facilities having up to 220 GWh of ramp up capacity and an additional 1 TWh of battery manufacturing projects has been announced or are currently under construction. Additionally, the EU is developing its potential in critical and strategic raw materials offering opportunities for collaboration with Norwegian partners.

Application of high environmental, social and governance standards and practices will be facilitated through mutual consultation and exchange of information on relevant policies and initiatives along the entire value chains, including recycling and waste management.

The deal also aims to mobilise financial and investment instruments to support investment projects under the Partnership, through Invest EU, the European Raw Materials Alliance and the European Battery Alliance. This is one area where battery makers such as Morrow have struggled,

The deal will also develop necessary skills for high-quality jobs in raw materials and battery sectors. This includes mobilising stakeholders and financial support for the development and deployment of adequate initiatives and the uptake of existing ones such as the European Battery Academy.

This is an important building block in the EU-Norway Green Alliance, announced last year, and the MoU was signed by Maroš Šefčovič, Executive Vice-President for the European Green Deal, Interinstitutional Relations and Foresight of the European Commission, and Jan Christian Vestre, Minister of Trade and Industry of the Kingdom of Norway.

“We are bringing cooperation between the EU and Norway to another level, as today’s signature is of strategic value. It will create a wide range of business and research opportunities on both sides, strengthening both our industrial base and our political bond,” said Maroš Šefčovič, Executive Vice-President for European Green Deal, Interinstitutional Relations and Foresight.

“This partnership boosts further the EU’s strong Single Market relations with Norway. It allows to reinforce our economic ties and strategic value chains for the green and digital transition. Together, we pave the way for a more resilient economy, ensuring the supply of critical raw materials and manufacturing of batteries for Europe’s jobs and growth,” said Thierry Breton, Commissioner for Internal Market.

A  business match-making event is planned during Hannover Messe on 22 April.



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