Norway and the EU enter into a green strategic industrial partnership

-This industrial partnership creates a win-win situation for Norway and the EU. To achieve our ambitious climate and green transition goals, we need to work even more closely. With this green industrial partnership on land-based raw materials and batteries, we will reach our goals faster while also facilitating economic growth, increased investments, and more green jobs in Norway," said Minister of Trade and Industry Jan Christian Vestre.

-We are bringing cooperation between the EU and Norway to another level, as today’s signature is of strategic value. It will create a wide range of business and research opportunities on both sides, strengthening both our industrial base and our political bond, said Executive Vice-President Maroš Šefčovič.

Read the memorandum of understanding here.

The industrial partnership is part of the Green Alliance that Norway and the EU signed last year. The Green Alliance constitutes a framework for enhanced climate, environmental, energy, and industrial cooperation with the EU and complements the EEA Agreement. The industrial partnership is the first building block under the Green Alliance.

-We have worked diligently to establish the industrial partnership. The agreement is important for Norwegian businesses in general, and for actors in the European battery and raw material value chains in particular. A central goal of the industrial partnership has been to create a better basis for Norway’s participation in EU policy and regulatory development. The industrial partnership provides us with an opportunity for regular dialogue with the EU on matters affecting our green value chains. This is particularly valuable at a time when Norway and Europe face both trade and security challenges," said Minister Vestre.

The industrial partnership is based on the government's Green Industrial Initiative and the sectors included therein, in addition to the Battery Strategy (2022) and the Mineral Strategy (2023). The focus areas of the partnership will expand over time and into other sectors. 

In the past year, Norway has entered into several green industrial partnerships, including with Germany, France, and Japan. Additionally, efforts are underway to establish agreements with other selected countries, such as the UK, USA, and Nordic countries.

Land-Based Raw Materials

The Industrial partnership will initially encompass development of integrated value chains for critical raw materials and batteries. Raw materials such as minerals and metals are essential for the green and digital transformation, and Norway is an important supplier of many critical raw materials.

-It makes us vulnerable that large parts of the supply chains for critical raw materials are concentrated in individual countries, such as China. Therefore, we must contribute to ensuring both our own and our partners' access to minerals and metals needed for the green and digital transformation. Increased cooperation with the EU in this area can reduce vulnerabilities in the value chains, said Vestre.

Batteries

Both the EU's Green Deal, Norway's Green Industrial Initiative Roadmap, and the Battery Strategy highlight batteries as a key technology for the transition to renewable energy. Global demand for batteries is expected to increase tenfold or twentyfold in the next decade. The Norwegian battery value chain is evolving, but Norwegian battery players have expressed concerns about the impact of the rules of origin in the Trade and Cooperation Agreement between the EU and the UK. The rules entail a 10% tariff on electric vehicles traded between the EU and the UK with batteries originating outside the EU and the UK, including Norwegian batteries.

-To establish a strong renewable industry, Norwegian companies depend on having as equal access as possible to international markets as their competitors. Therefore, it is important that we have elevated the battery value chain as a cooperation area with the EU, said Vestre.

Thanks to the industrial partnership, Norway will now participate in ministerial meetings in the European Battery Alliance. The development and establishment of the European value chain, of which Norway will be an integral part, are discussed and planned there. The partnership facilitates close dialogue on the establishment of the European battery value chain.

-The partnership provides a framework for conversations about possible disruptions of regional value chains. This entails discussions of the application of the rules of origin laid down in the EU-UK Trade and Cooperation Agreement for battery packs and battery cells of Norwegian origin installed in electric vehicles produced in and traded between the EU and the UK, said Vestre.