Norway and EU to co-operate on supply chains

Norway and the EU have signed an agreement to co-operate on EV supply chains as part of a newly announced ‘Green Alliance’.

The two regions will look to develop integrated value chains for both critical raw materials and batteries.

"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," says Norwegian minister of trade and industry Jan Christian Vestre.

Norway is Europe’s largest producer of silicon and graphite. The country also has reserves of cobalt and nickel.

“Closer integration of raw materials and batteries supply chains, supported by geographical vicinity, is a way to minimise adverse consequences of unpredictable future disruptions,” the agreement suggests.

The two sides also hope for closer cooperation on research and development.

The industrial partnership will provide Norway — which is a member of the European Free Trade Agreement (Efta) bloc but has steadfastly refused to join the EU — with the opportunity for regular dialogue with the EU on factors affecting these value chains, and it will also participate in ministerial meetings in the European Battery Alliance.

The partnership will also entail ‘discussions’ of the application of the rules of origin for battery packs and battery cells of Norwegian origin installed in EVs in the EU.

Some Norwegian battery firms are concerned about the impact of the rules on demand for their products.

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 the UK, USA, and Nordic countries.

Norway is home to Europe's biggest plant for recycling EV batteries.

The country has a well-developed ecosystem thanks to a series of mandates on EVs — the most recent of which stipulates that all new cars sold by 2025 should be zero-emissions.

Zero-emission vehicles made up 82.4pc of passenger cars that were registered in Norway in 2023, according to data from the Norwegian Road Federation — a far higher share than any EU member state.