The EIB loan will cover approximately half of the project costs in the initial phase, with cathode materials produced supplying battery manufacturers of high-tech lithium-ion batteries, the EIB said in a statement on Monday June 15.

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.