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European Innovation Council and SMEs Executive Agency (EISMEA)

I3 Instrument-funded projects help strengthen Europe’s critical raw materials value chains

  • News article
  • 26 May 2026
  • European Innovation Council and SMEs Executive Agency
  • 7 min read

Across Europe, innovations in critical raw materials and circular industrial value chains are moving beyond demonstration phases and entering real industrial deployment — strengthening the European Union’s strategic autonomy, reducing dependencies on external supply chains, and reinforcing long-term competitiveness.

Under the Interregional Innovation Investments (I3) Instrument, 7 ongoing projects — representing approximately €45 million in investment — are supporting the development of resilient and circular value chains for batteries, semiconductors, permanent magnets, advanced recycling, and sustainable mobility solutions. In addition, one project has already been successfully completed under the Instrument.

From urban mining and battery recycling to semiconductor recovery and circular manufacturing, these projects are helping Europe secure access to critical raw materials, accelerate the green and digital transitions, and strengthen industrial ecosystems across regions, including Less Developed Regions.

At the EIT Raw Materials Summit 2026, five I3 Instrument projects — BATMASS, CLOSER, EVEN-CLOSER, SICAPERMA and IN-MOB — joined forces under a common I3 Instrument stand with one shared mission: scaling resilient critical raw materials value chains across Europe.

The joint presence showcased how the I3 Instrument supports interregional innovation, industrial scale-up, and strategic autonomy by accelerating circular and sustainable value chains for batteries, semiconductors, advanced mobility, and magnet recycling. Together, these projects demonstrate the strong added value of interregional cooperation in connecting SMEs, industries, research organisations, and public authorities across Europe to strengthen competitiveness, reduce strategic dependencies, and support the green and digital transitions.

BATMASS: The first EU Circular Battery Valley

The Challenge

Europe’s battery supply chain is under growing pressure due to increasing demand for electric mobility and energy storage, combined with vulnerabilities linked to imported raw materials. This creates supply risks, price volatility, and strategic challenges for Europe’s industrial competitiveness and green transition.

The Solution

The BATMASS project is creating the first EU Interregional Circular Battery Valley, bringing together regions, SMEs, industries, research organisations, and clusters to develop circular battery technologies and processes. With a portfolio of TRL6+ investments, BATMASS supports the scale-up and commercialisation of innovative solutions for battery recycling, second-life applications, and recovery of battery-grade materials.

The project mobilises four large-scale demonstration pilots across the battery value chain, including advanced reverse logistics for battery collection, second-life battery manufacturing, recovery of raw materials from black mass, and production of new-generation batteries using recycled materials.

Key Impacts

  • Strategic autonomy – Reducing Europe’s dependence on imported battery raw materials and strengthening resilience of the EU battery ecosystem.
  • Circular economy & decarbonisation – Supporting closed-loop recycling, second-life battery applications, and lower environmental impact across the battery value chain.
  • Industrial competitiveness – Accelerating deployment of market-ready circular battery technologies and supporting compliance with upcoming EU Battery Regulation requirements.
  • Interregional innovation ecosystem – Connecting SMEs, corporates, RTOs, investors, and policymakers to unlock new cross-regional investment opportunities. 

CLOSER: Circular raw materials for European open strategic autonomy on chips and microelectronics production

The Challenge

Europe remains highly dependent on extra-EU sources for semiconductors and critical raw materials, while large quantities of valuable materials from e-waste, solar panels, and industrial electronics are insufficiently recovered and reused. At the same time, growing demand for semiconductors is increasing pressure on strategic supply chains and accelerating the need for more sustainable and circular industrial models.

The Solution

The CLOSER project is building a pan-European value chain for the efficient collection, recovery, and reprocessing of semiconductor materials from e-waste. With €14 million in total budget (€9.9 million EU contribution), the project brings together 31 partners from 18 EU regions to develop and scale innovative circular solutions for semiconductor recovery and reuse.

The four strategic investment areas focus on sustainable e-waste processing, semiconductor production, circular photovoltaics, and digital tools supporting circular value chains and Digital Product Passports. The project also contributes strongly to regional cohesion by strengthening investments and innovation capacity in Less Developed and Transition Regions such as Calabria and Central Macedonia.

Key Impacts

  • Strategic autonomy – Through 14 demonstration cases (TRL 7–9), CLOSER supports the creation of an internal EU semiconductor supply chain and reduces dependency on external suppliers.
  • Circular economy & decarbonisation – Recovering critical raw materials such as Silicon, Gallium, Indium, and Germanium from end-of-life electronics and renewable energy systems.
  • Industrial competitiveness – Supplying remanufactured components and secondary raw materials to key sectors including automotive, aerospace, renewable energy, and computing. 

EVEN-CLOSER: involvement of less dEVeloped rEgions to streNgthen the CLOSER circular value chain for chips and microlectronics production

The Challenge

Europe’s economy and strategic industries increasingly rely on semiconductors and advanced electronics, while valuable materials contained in e-waste and electronic equipment remain underutilised. Strengthening circularity and resilience in semiconductor supply chains is becoming essential for Europe’s competitiveness, industrial sovereignty, and green transition.

The Solution

The EVEN-CLOSER project is building a large-scale European circular semiconductor ecosystem by connecting SMEs, industries, researchers, and regional authorities across more than 20 regions and 15 countries. The project supports urban mining, advanced recycling, semiconductor remanufacturing, photovoltaic recycling, and digital traceability solutions to strengthen Europe’s internal semiconductor supply chain.

EVEN-CLOSER develops innovative solutions across the full value chain, including AI-driven sorting systems, recovery of critical raw materials, circular PCB manufacturing, secure Digital Product Passports, and pilot production of recycled silicon-based devices. The project places strong emphasis on Less Developed and Transition Regions through pilot plants, upgraded recycling infrastructures, workforce upskilling, and integration into European industrial ecosystems.

Key Impacts

  • Strategic autonomy – Through 15 investment-ready demonstration cases (TRL 6–9), the project strengthens Europe’s semiconductor supply chain and reduces dependence on imported critical raw materials.
  • Circular and green industry – Scaling urban mining, photovoltaic recycling, and circular electronics manufacturing to support decarbonisation and resource efficiency.
  • Industrial competitiveness – Supporting investment-ready solutions for sectors such as automotive, aerospace, renewable energy, defence, and advanced electronics. 

IN-MOB: Innovative Products For Sustainable Micromobility

The Challenge

Urban areas and islands across Europe face increasing mobility challenges linked to congestion, emissions, energy consumption, and limited sustainable transport infrastructure. Less Developed and insular regions are particularly affected, often lacking access to innovative clean mobility solutions and integration into European electric mobility value chains.

The Solution

The IN-MOB project is developing and demonstrating next-generation sustainable micro-mobility solutions tailored to urban and insular environments. With a budget exceeding €4 million (€3 million EU contribution), the project brings together partners from Italy, Portugal, Slovenia, and Belgium to accelerate the market uptake of innovative electric mobility technologies.

The project supports the development and commercialisation of ultra-light electric vehicles, including sustainable e-bikes, cargo e-bikes, self-balancing e-scooters, high-efficiency electric motors, and photovoltaic-powered charging and battery-swapping hubs. Two major demonstration pilots are being implemented in Palermo (Sicily) and Funchal (Madeira), both located in Less Developed Regions.

Key Impacts

  • Sustainable urban mobility – Supporting cleaner, smarter, and more energy-efficient transport systems for cities and islands.
  • Green innovation & market uptake – Advancing micro-mobility technologies from TRL 6–7 to TRL 8–9 to accelerate commercial deployment.
  • Industrial competitiveness – Strengthening collaboration between SMEs, research organisations, and public authorities in advanced manufacturing, renewable energy, and smart mobility solutions. 

SICAPERMA: Sustainable Innovation Investment Catapult for Permanent Magnets

The Challenge

Europe remains highly dependent on imported permanent magnets and critical raw materials essential for strategic sectors such as e-mobility, renewable energy, and electronics. At the same time, recycling capacities for end-of-life magnets remain limited, creating supply risks and industrial vulnerabilities.

The Solution

The SICAPERMA project is developing a fully circular value chain for recycled permanent magnets through advanced recycling and remanufacturing technologies. With a budget of €6.2 million (€4.4 million EU contribution), the project brings together 14 partners from 11 European regions to demonstrate innovative industrial solutions for magnet dismantling, recycling, and reintegration into strategic applications.

The project includes three industrial pilots covering the full value chain: dismantling and pre-processing of end-of-life magnets, production of recycled sintered and bonded magnets, and integration into motors, sensors, and renewable energy systems. Less Developed and Transition Regions host key pilot activities, creating new innovation ecosystems, skilled jobs, and business opportunities, while More Developed Regions contribute advanced technological expertise and innovation capabilities.

Key Impacts

  • Strategic autonomy – Reducing Europe’s dependence on imported critical raw materials and strengthening resilient industrial value chains.
  • Circular economy & green transition – Recovering and reusing Nd-Fe-B permanent magnets to lower environmental impacts and support decarbonisation.
  • Industrial competitiveness – Supporting strategic sectors including e-mobility, renewable energy, electronics, and industrial automation.

Details