Fund Solutions

EIN InnoEnergy, Demeter Launch €500m Battery Fund

Demeter Investment Managers and InnoEnergy, a sustainable energy investment firm supported by the European Institute of Innovation and Technology, have collaborated on a fund to invest in battery raw materials across Europe. With a target size of €500 million (US$538.1 million), the EBA Strategic Battery Materials Fund will seek to develop a diverse supply chain, building on the success of the European Battery Alliance (EBA), launched by the European Commission in 2017 to create a resilient EU battery industry. The fund will aim to respond to soaring demand for batteries, which has exposed significant gaps in the upstream of the EU’s battery material supply chain. Its investment strategy will align with the Critical Raw Materials Act, launched last year to ensure the EU’s access to a secure, diversified, affordable and sustainable supply of critical resources. At least 70% of investments will be dedicated to projects increasing domestic production from mining, processing, refining and recycling in EU and neighbouring countries, while the remaining 30% will focus on increasing raw material supply from partner countries, including Canada, Namibia, and Argentina. The fund will classify as an Article 8 fund under the EU’s Sustainable Finance Disclosure Regulation (SFDR), and will comply with the robust sustainability criteria set under the EU Battery Regulation. Demeter will act as fund manager. “The battery industry is of strategic importance and a key battleground for global competitiveness,” said Maroš Šefčovič, European Commission Executive Vice-President in charge of the European Green Deal and the EBA. “It is vital to continuously up our game, with securing battery raw materials being the single biggest task ahead. Today’s innovative announcement shows that we mean business – on both boosting our domestic European capacities and bolstering diversification via trade and cooperation with reliable partners. We need to be strategic, bold, agile.”

The practical information hub for asset owners looking to invest successfully and sustainably for the long term. As best practice evolves, we will share the news, insights and data to guide asset owners on their individual journey to ESG integration.

Copyright © 2024 ESG Investor Ltd. Company No. 12893343. ESG Investor Ltd, Fox Court, 14 Grays Inn Road, London, WC1X 8HN

To Top