XEROTECH (IEU G)

Xerotech produce batteries for non-automotive machines in particular electric off-road vehicles through an innovative process developed inhouse. The project will scale up the capacity of battery pack assembly.

The aim is to contribute to support Xerotech's manufacturing capabilities to deploy modular battery solutions in the Nonroad Mobile Machinery (NRMM) space. This will enable the company to further expand it's production and reduce costs, hastening the electrification in the NRMM sector.

The operation is in line with the InvestEU research, development and innovation objective through deployment of technologies and processes. It is in particular aligned with Annex II (2) development of sustainable and safe transport infrastructures and mobility solutions, equipment and innovative 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 project concerns the deployment of process with patented technology which allows the decarbonisation of Non-Road Mobile Machinery (NRMM).

The project addresses several market failures. Imperfect competition is present in the field of the battery manufacturing supply chain, mainly served by dominant non-EU manufacturers. As well, imperfect and asymmetric information affects the Project, as the promoter is a start-up investing in innovative technology competing with established companies and technologies. Having access to EIB financing also allows the Promoter to accelerate the deployment of the technology and reach the market faster.

Alongside its positive climate externalities the project will support innovation in the battery supply chain.

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 improve its financing conditions.

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

The project does not require any specific environmental permits as they do not have any trade effluent or process emissions.

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.