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Italian Startup Secures €20 Million EIB Investment to Advance Electric Transport Solutions

Hanaa Siddiqi



The European Investment Bank (EIB) has granted a €20 million venture debt loan to Tau Group, an Italian tech startup driving innovation in sustainable transport solutions. The funding, announced at the EIB headquarters in Luxembourg, aims to scale Tau Group’s environmentally friendly magnet wire production, increasing output from 2,000 tonnes to 12,000 tonnes annually by 2027.


The investment, supported by the European Commission’s InvestEU programme, will be allocated to Tau Group’s facility in Turin, Italy, between 2024 and 2027. The project seeks to replace conventional wire enameling techniques, which rely on hazardous solvents, with Tau Group’s proprietary DryCycle technology. This advanced method requires no solvents, reduces energy consumption, and minimizes waste while delivering superior performance at lower costs.


 Magnet wires are crucial in electric motors used in vehicles and machinery, but traditional manufacturing methods involve multiple evaporation stages and the use of polluting solvents. Tau Group’s DryCycle process simplifies this into a single step, producing high-performance wires that align with global sustainability goals and contribute to the energy transition.


 This innovative process enhances efficiency and accelerates progress in the sustainable transport sector, supporting the production of electric vehicles and eco-friendly machinery. By adopting advanced engineering polymers for wire coating, Tau Group is positioned as a leader in the green transformation of automotive manufacturing.


 The EIB’s venture debt instrument, a form of quasi-equity financing, is designed to support rapidly growing, innovative businesses like Tau Group. Since 2015, the EIB has invested over €6 billion in 200 operations, making it Europe’s most extensive venture debt portfolio.


Through this partnership, Tau Group is set to revolutionize magnet wire production, bridging the gap between sustainability and industrial efficiency while reinforcing the European Union's commitment to decarbonizing the automotive industry.


“Electrifying the car manufacturing industry and ensuring its production efficiency is fundamental, not only to step up the fight against climate change but also to reinforce Europe’s competitiveness,” said Alessandro Izzo, EIB Director of Equity, Growth and Project Finance. “EIB financing aims to create a more efficient and sustainable manufacturing industry that is ready to face the challenges of the future.”


"EIB support represents a key contribution to accelerating the growth of European industry and advancing the electrification of production processes and consumption," said Tau Group CEO Francesco Taiariol.


“This support will enable us to continue scaling up production capacity and make full use of the DryCycle process to manufacture magnet wire, an essential component of electric motors. Tau Group is committed to becoming an industry leader, promoting sustainability and efficiency in its sector, and consolidating Europe’s role at the forefront of the global energy transition.”

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