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March 25, 2025

Focus on... the EU Clean Industrial Act

On February 26 February, the European Commission launched its flagship Clean Industrial Deal (CID),setting the stage for Europe’s industrial decarbonization while driving economic growth. This strategy is built on six key pillars: affordable energy, boosting demand for clean products, financing the clean transition, circularity and access to materials, acting on a global scale as well as skills and quality jobs.

Decarbonizing the clean tech sector is recognized in the Deal as a cornerstone of industrial transformation. The CID introduces a comprehensive set of flagship actions, including various legislative measures set to be implemented throughout 2025 and 2026.

One of the impactful proposals is the Action Plan on Affordable Energy, designed to drive down electricity costs by completing the Energy Union and attracting major investments into Europe’s energy infrastructure. This initiative aims to enhance energy security, boost competitiveness, and accelerate the transition to clean power across the EU. Moreover, the Industrial Decarbonisation Accelerator Act will seek to increase demand for EU-made "clean products” through the introduction of sustainability, resilience and ‘made in Europe’ criteria on public and private procurements. The Commission will assess how to include requirements and non-price criteria in relevant product legislation, such as renewables or sustainable battery cells for cars and corporate fleets.

Importantly forFree4Lib, to secure access to critical raw materials, the European Commission plans to establish a Critical Raw Materials Centre for joint procurement and strategic stockpile management. This initiative, combined with the Circular Economy Act, will promote the use of secondary materials in manufacturing, fostering a more sustainable and self-sufficient supply-chain. As already outlined in the Automotive Industrial Action Plan, a key impact on the European battery recycling industry will be the restriction of black mass exports, ensuring that valuable materials remain within the EU. The Circular Economy Act will be proposed in 2026 , therefore, it is so far uncertain what form exactly it will take on. However, it is likely to include significant financial support for businesses embracing the transition to a circular economy.  Moreover, the Commission will also work with the European Investment Bank to employ the Tech EU investment programme aiming to, among others, invest in innovative technologies involving energy storage and critical raw materials.  

The Clean Industrial Deal represents a significant opportunity for the European battery recycling sector. By prioritizing circularity, securing access to critical raw materials, and incentivizing secondary material use, the CID strengthens the policy framework necessary battery recycling. The upcoming Circular Economy Act, alongside the establishment of a Critical Raw Materials Centre, signals a strong political commitment to further address the critical raw material dependencies and ensure that scarce materials are used and reused efficiently. Furthermore, the CID’s emphasis on financing industrial decarbonisation through instruments like the Tech EU investment program could provide crucial funding venues for projects that enhance sustainable battery value chains.

To read the full document, visit the EU Commission dedicated webpage.

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