Strategy for a sustainable battery value chain

A global industrial race is underway in the wake of the accelerating electrification of the vehicle fleet. Highperformance, rechargeable lithium-ion batteries that are sustainably produced are central to the development of the entire transport and energy system and are needed in much greater volumes than can be produced today.

To meet European demand, at least about 20-30 new large-scale plants for the production of battery cells are necessary. This requires investments in the order of EUR 100 billion in the EU over the next decade.

Sweden has a strong position, with access to raw materials, cheap and fossil-free electricity, expertise and policy instruments that promote continued electrification with high environmental requirements. In addition, Sweden has strong actors along the entire value chain, from recycling and mining to the manufacture of active materials, complete battery cells and battery packs, to applications in the automotive industry as well as in the power system.

The development of sustainable battery production is not only important for achieving climate goals, but also enables the emergence of a competitive industry that creates growth and jobs throughout the battery value chain.

The national strategy for a sustainable battery value chain is developed by the government initiative Fossil Free Sweden in cooperation with EIT InnoEnergy who also developed the foundation of the European Battery Strategy for the European Commission.

The strategy is supported by actors from the entire value chain as well as universities and environmental organisations.

The strategy makes a list of demands for national policy within five areas:

  1. Sustainable batteries for a fossil-free energy and transport system: Stimulate demand for and use of sustainable batteries.
  2. Sustainable battery production, a new industry for Sweden: Create conditions for the development of a sustainable battery value chain in Sweden.
  3. Recovery and extraction of materials for a sustainable and circular battery industry: Create conditions to enable the mining industry and the recycling industry to contribute sustainably produced raw materials.
  4. Skills development for a charged future: Invest in research, innovation and education for skills development.
  5. Collaboration and dialogue for growth and export: Implement and follow up the action proposals through broad collaboration throughout the battery value chain

The strategy was submitted to the Government represented by Deputy Prime Minister and minister of environment and climate Isabella Lövin, and Minister for Business, Industry and Innovation, Ibrahim Baylan on 2 December 2020.