The European Investment Bank (EIB) has granted a €125 million ($140 million) loan to Belgium-based global material technologies and recycling group Umicore to partially finance the construction of a battery cathode material manufacturing facility in Poland.
The rechargeable lithium-ion batteries will be primarily used in electric vehicles (EVs).
The move comes alongside the EIB – the long-term lending institution of the European Union - recently reaffirming its commitment to financing projects across the entire value chain to contribute to the decarbonization of the economy.
The EIB expects to increase its backing of battery-related projects to more than €1 billion of financing in 2020.
In March, the EIB signed a €480 million loan agreement with LG Chem Wroclaw Energy, the Polish subsidiary of the LG Chem Group, to support the construction of manufacturing facilities for advanced lithium-ion cells and batteries in Poland.
“The trend towards the electrification of the automotive industry is gaining ground and in this context it is important to develop a European capacity across the full value chain of electric vehicle battery production,” Teresa Czerwinska, EIB vice-president overseeing operations in Poland, said.