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Savannah to benefit from EU Battery Consortium
Savannah to benefit from EU Battery Consortium.
About this update from Savannah Resources Plc
[{"type":"text","content":"\n \nRNS Number : 8686Y Savannah Resources PLC 14 May 2019 \n\n \n \n14 May 2019\n \nEuropean Battery Cell Consortium to invest up to €6bn in Electric Car Battery Industry and EU to launch a European Raw Materials Investment Facility\n \nSavannah Resources plc ('Savannah' or the 'Company', AIM: SAV, FWB: SAV and SWB: SAV), the resource development company, welcomes the news that France and Germany have established a European cross-border battery cell consortium with the objective of developing next-generation batteries for electric vehicles (EVs) and have announced an initial investment of between €5bn to €6bn (US$5.6 to US$6.7 billion) in the initiative. \n \n€4bn of the investment is expected to come from European private companies, with France and Germany having earmarked €1.7bn (US$1.9bn) of this investment to support European private company alliances, mostly comprising automakers and energy firms. This is in addition to €1.2bn of planned state subsidies, to be approved by Brussels, aimed at supporting the creation of a viable battery manufacturing sector and thereby reducing European carmakers' dependence on Asian suppliers of lithium ion batteries. Today the European share of global battery cell manufacturing is just 3 per cent, while Asia has an 85 per cent share according to a report published by the European Commission in April this year. To read the report please use the following link: https://ec.europa.eu/commission/sites/beta-political/files/report-building-strategic-battery-value-chain-april2019_en.pdf\n \nFrench Economy and Finance Minister Bruno Le Maire said that the two governments were responding to requests from European carmakers for help in reducing their dependence on imported lithium ion batteries and that the goal was to establish two production plants over the next four years, one in France and one in Germany, with around 1,500 employees in each. One of the first projects for the Franco-German consortium will be a pilot factory, with around 200 employees in France, which will open in the coming months. With this initiative, Savannah excepts to gain further traction from potential partners who understand the compelling supply dynamic that is developing in Europe.\n \nThe announcement followed the third meeting of the European Battery Alliance si...