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Lithium-ion (Li-ion) batteries are an advanced battery technology that are used in a wide range of products including personal electronics and electric vehicles. They are also a key enabling technology in emerging markets like grid-scale renewable energy integration and aerospace. To ensure the continued success of these markets, new innovations in Li-ion battery technology are needed to improve performance and reduce the reliance on critical raw materials. The EU-funded Hydra project aims to develop a new generation of Li-ion technology that uses sustainable materials to improve the energy, power, and cost of the battery. The project will combine novel materials and environmentally friendly manufacturing techniques with pilot-scale cell manufacturing to develop high-energy batteries with long lifetime. Moreover, it will build a synergy with strong investments by the project’s industrial partners, aiming to retain a significant market share for Europe.