P-CAM COMMERCIAL DEMO PLANT (IEU GT)

Promoter – Financial Intermediary

PURE BATTERY TECHNOLOGIES PTY LTD

Location

• Germany

Description

The project consists of the construction and operation in Hagen, Germany, of an innovative first-of-its-kind commercial demonstration plant for the manufacturing of precursor cathode active material (nickel, manganese and cobalt in a specific ratio), which is used in the production of advanced Lithium-ion cells.

Additionality and Impact

The project is eligible under Article 309 point (c) Common interest, and qualifies under the Bank's "Innovation; Digital and Human Capital" public policy goal.

The project concerns the first full-scale production of an innovative process to produce pCAM, a material that is used in electric vehicle batteries. The production process utilises two novel processing steps which reduce the carbon intensity, improve safety and reduce cost of manufacturing pCAM. The process is unique in that it can operate on both primary raw material call MHP (mixed hydroxide precipitate) and secondary waste battery material (black mass). The process is capable of operating on 100% black mass. 

The Bank provides the Promoter with high risk debt financing in order to support the commercialization of its innovation (first full commercial scale plant). This type of financing is difficult to access for innovators with a limited track record. The EIB's contribution helps provide both diversification with regard to the promoter's funding mix and a longer maturity.

Thanks to the GTT financing, the promoter is able to achieve an adequate equity/debt mix and crowd-in private investors. Having access to EIB financing also allows the Promoter to accelerate the deployment of his innovation and reach the market faster.

Objectives

The project will demonstrate commercial-scale operation of an innovative technology to produce precursor cathode active material ("pCAM"). The production process utilises two novel processing steps, which reduce the carbon footprint, improve safety and reduce cost of manufacturing pCAM.

Sector(s)

• Industry - Manufacturing

Proposed EIB finance (Approximate amount)

EUR 37 million

Total cost (Approximate amount)

EUR 73 million

Environmental aspects

The proposed demonstration plant will be the first-time deployment of a novel process to produce pCAM, which is used to produce batteries for electric vehicles. The process is breakthrough in terms of low energy requirements, which results in a significant reduction in the greenhouse gas (GHG) emissions compared to conventional technology. The process also utilises less hazardous chemicals compared to the conventional process. The process is also capable of operating on recycled battery material which leads to further GHG savings compared to primary raw materials. The demonstration plant is subject to the licensing requirements of the German Federal Emission Control Act, including a preliminary environmental impact assessment under the UVPG. These laws include the implementations of the IED and EIA Directives. The respective studies have been submitted and the approval process will be followed by a public consultation period. The promoter is in close contact with the competent authorities and stakeholders. The installation also falls under the SEVESO directive as well. The final permit will encompass the operational and construction permits as well as the SEVESO requirements.

Procurement

The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the promoter is subject to the EU public procurement legislation then the Bank would duly inform the Commission Services and would require the promoter to apply those rules.

Status

Signed - 2/12/2022