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March 28, 2025

How can FREE4LIB fit in the EU Industrial Automotive Sector Action Plan

In January 2025, European Commission President Ursula von der Leyen launched a Strategic Dialogue on the Future of the European Automotive Industry to address the most pressing challenges facing the sector. This dialogue has resulted in an action plan, presented on 5 March 2025, that outlines measures to accelerate the transition to zero-emission mobility while strengthening the competitiveness of the industry.

The measures focus on five key areas: innovation and digitalisation, clean mobility, competitiveness and supply chain resilience, skills and social dimension, and level-playing field and business environment.

The most critical pillar for the battery industry and the FREE4LIB project is pillar three: competitiveness and supply chain resilience. Given the high added value of EV batteries within the automotive sector, establishing a robust and competitive domestic production base is essential for the industry's future. The EU aims to secure over 50% European added value across the battery value chain, reinforcing its strategic autonomy. To support this goal, the European Commission has announced substantial funding through the Innovation Fund and InvestEU's Battery Booster Package, which will drive cutting-edge battery projects. Additionally, the Commission is exploring direct financial support for EU-based battery manufacturers, aiming to ensure competitive production.

To ensure a stable and cost-effective supply of raw and refined materials, the European Commission will boost domestic raw material production, establish strategic partnerships abroad, and streamline approval processes for battery raw material and refining projects beyond those already identified.

Additionally, to enhance the economic viability of a fully integrated recycling value-chain, the Commission will also explore financial support for end-of-life vehicles and battery recycling facilities. Moreover, under the Waste Framework Directive the black mass will be classified as hazardous when it becomes waste, thus prohibiting its export to non-OECD countries, while stimulating its recycling by improving access in Europe. 

The Automotive Action Plan focuses on a more resilient and competitive European battery ecosystem. By recognizing battery recycling as a key factor in supply chain resilience, the Plan reinforces the importance of creating a strong circular economy for critical raw materials. The proposed financial support for end-of-life vehicle and battery recycling facilities, combined with regulatory clarity on black mass exports, will directly impact the recycling sector by aiming to increase the access to secondary materials within the EU. 

FREE4LIB also welcomes the announced 350 million euros budget set to fund EU research projects on next-gen battery technology under Horizon Europe for 2025-2027. By doing so, the EU is putting a strong focus on battery innovation through the Horizon Europe partnership BATT4EU, under which FREE4LIB was funded.

To read the full Action Plan: Industrial Action Plan for the European automotive sector

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