**Europe begins to respond to US in battery supply chain support**

Governments of key European nations have ratcheted up support for domestic battery industry supply chains as they look to respond to the huge level of support given by the US under the 2022 Inflation Reduction Act. The US Department for Energy (DoE), as part of its battery material processing, recycling and manufacturing program, in late September issued the second phase of a $3.1 billion investment for 25 selected projects. This forms part of total planned investment by the DoE of $16 billion in the US battery supply chain.

With the US also set to offer huge tax incentives under the Inflation Reduction Act, especially for battery manufacturing, Rystad Energy assesses how US and European government support currently compare across key industries within the lithium-ion battery supply chain.