SANDBATTERY (IEU TI)

Promoter – Financial Intermediary

GRAPHENIX DEVELOPMENT INC

Location

• Germany

Description

The project concerns a demonstration plant to produce silicon anodes through a coating process. GDI, the promoter, will build the production plant at the equipment supplier's facility in Lauenförde (Germany). Silicon-based anodes are known for their high energy density and faster charging times, making them a sustainable alternative to graphite in lithium-ion batteries.

Additionality and Impact

The project is in line with the InvestEU objective to finance strategic investment in the area of the green transition through demonstration projects of related technologies.

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 promoter (GDI) plans to scale up a production process to produce silicon anodes in Lauenförde (Germany). The silicon anodes offer significant advantages in terms of specific capacity and charging speed compared to current anode technology.

The project addresses several market failures related to financing of a small, innovative, high-growth company. 

The project has positive climate externalities as it contributes to decarbonisation of the transport sector.

EIB is providing a substantial amount of senior financing to the Project, with a catalytic role, expected to crowd in other financiers. With the EIB participation, the Promoter will be able to diversify its funding sources and likely improve its financing conditions.

The project would not have been carried out (to the same extent) by the EIB without the InvestEU support.

Objectives

The aim is to deploy a demonstration plant to produce silicon anodes through a coating process. Silicon anodes allow faster changing and higher specific capacity batteries. The facility will be located at the AGC Interpane site in Lauenförde (Germany) and will be used to validate samples for use in the EU automotive sector.

Sector(s)

• Industry - Manufacturing

Proposed EIB finance (Approximate amount)

EUR 20 million

Total cost (Approximate amount)

EUR 42 million

Environmental aspects

The EU is heavily reliant on imports of anode materials required for electric vehicles. This project brings production into Europe to strengthen the supply chain while adhering to EU environmental and social standards. The promoter has confirmed that the only required permits for the project at hand will be a change of use and relevant construction permit for any required facilities upgrades.

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 European Commission will be duly informed, which would require the promoter to apply those rules.

Status

Signed - 22/12/2023