- EIB financing will enable Tau Group to increase production of high-performance and environmentally friendly magnet wire from 2 000 to 12 000 tonnes per year for use in vehicles and machine parts.
- Investments will be made at their facility in Turin (Italy) between 2024 and 2027.
- The project is backed by InvestEU, the European Commission’s investment programme.
The European Investment Bank (EIB) has announced a €20 million venture debt loan for Tau Group, an Italian technology startup at the heart of efforts to electrify transport solutions. The EIB’s investment will enable Tau Group to increase its production capacity for high-performance magnet wire for use in vehicles and machine parts that also contribute to the energy transition. The current capacity of around 2 000 tonnes is set to increase to 12 000 per year by 2027. The agreement, backed by InvestEU, was announced at the EIB Headquarter in Luxembourg.
The EIB-funded investments will be made at the plant in Turin by 2027. Tau Group’s objective is to replace current wire enamelling techniques – which involve using hazardous and polluting solvents – with a new technology making it possible to coat wire with advanced engineering polymers.
The use of wire in electric motors has been a complex process until now, requiring several evaporation stages as well as solvents that are harmful to the environment. The DryCycle process, patented by Tau Group, has just one step and yields the same or better results than the traditional process. It does not require the use of solvents, reduces energy consumption, and minimises waste during production. In this way, Tau Group produces high-performance, environmentally-friendly and low-cost magnet wire for electric vehicles and other electrical machinery, helping to speed up developments in the sustainable transport sector.
With venture debt, the EIB offers a type of quasi-equity financing designed to meet the specific needs of innovative businesses that are growing rapidly. The EIB's venture debt portfolio is the largest in Europe, with over €6 billion invested in 200 operations and 50 exit deals since 2015.
“Electrifying the car manufacturing industry and ensuring its production efficiency is fundamental, not only to step up the fight against climate change, but also to reinforce Europe’s competitiveness,” said Alessandro Izzo, EIB Director Equity, Growth and Project Finance. “EIB financing aims to create a more efficient and sustainable manufacturing industry that is ready to face the challenges of the future.”
"EIB support represents a key contribution to accelerating the growth of European industry and advancing the electrification of production processes and consumption," said Tau Group CEO Francesco Taiariol. “This support will enable us to continue scaling up production capacity and make full use of the DryCycle process to manufacture magnet wire, an essential component of electric motors. Tau Group is committed to becoming an industry leader, promoting sustainability and efficiency in its sector, and consolidating Europe’s role at the forefront of the global energy transition.”
Background information
About the EIB
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality. The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs. In the last five years, the EIB Group has provided more than €58 billion in financing for projects in Italy. All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment. Approximately half of the EIB's financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank's commitment to fostering inclusive growth and the convergence of living standards.
About InvestEU
The InvestEU programme provides the European Union with essential long-term financing, helping to leverage substantial sums of public and private funding to enable a sustainable recovery. It also helps to crowd in private investment for the European Union's strategic priorities such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects simpler, more efficient and more flexible. InvestEU has three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is deployed through financial partners that invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increasing their risk-bearing capacity and mobilising at least €372 billion in additional investment.
Tau Group
Tau Group is a technology company working at the heart of the energy transition, committed to decarbonising energy and electrifying transport options. Its patented technologies combine the need for sustainable, resource-efficient production with the power, reliability and performance required by electric vehicles and machinery. This makes it possible to manufacture smaller, more durable, more environmentally-friendly and more powerful motors, transformers and generators. Tau Group’s focus is on protective coatings for high-performance copper, aluminium, and steel wires with a low environmental impact.
