Luxembourg's AutoMobility Incubator: A Gateway to Europe
Luxembourg's AutoMobility Incubator: A Gateway to Europe
Israel is the fourth biggest mobility start-up ecosystem in the world in terms of financing, and its thriving start-up environment offers a real technological edge on the international scene. Current regulatory targets in the EU to reduce carbon emissions by 2030 constitute a real opportunity for Israeli companies looking to expand to the EU, and reach international audiences. Luxembourg and its opportunities in the mobility sector serve as an excellent launch pad and testbed to introduce mobility innovation in the European market. The AutoMobility Incubator is the latest addition to Luxembourg’s continuous commitment to smart mobility
Mobility is currently undergoing a radical change. Global phenomena such as urbanization, electrification, and climate change are changing the way we think about transportation, and innovations such as EV and smart mobility are accelerating the pace of change. For years, many governments around the world have heavily invested in implementing mobility infrastructures to enhance their citizens’ quality of life.
Luxembourg is no exception. Every day, the country sees some 200,000 commuters (44% of its workforce) crossing the border from nearby countries. To reduce the inevitable congestion, in 2020 the country made headlines for making all its public transportation free of cost – a world’s first. In parallel, it also built multiple Park + Ride hubs to support hybrid solutions that allow people to combine their car usage with public transportation, allowing maximum flexibility.
As part of its ongoing commitment to smart mobility, the country has launched its AutoMobility Incubator in December 2024, symbolizing the commitment of Luxembourg to encourage innovation in the field of mobility. The AutoMobility Campus offers dedicated premises for mobility companies, including the new startup incubator hosting innovative ventures. It also facilitates partnership opportunities with automotive suppliers and access to their R&D infrastructure.
Unlocking Opportunities for Israeli Mobility Companies
“The strong, dedicated focus on the mobility sector in Luxembourg is a great opportunity to leverage for emerging tech companies,” says Jennifer Schwarz, Executive Director of EcoMotion Community, a joint venture of the Israel Innovation Institute alongside Israel’s Ministry of Transport and Road Safety, and the Ministry of Economy and Industry. “The many stakeholders and players are collaborating to assure mutual success and opening doors for Israeli companies,” she adds. Schwarz visited Luxembourg with a Startup Nation Central delegation in 2023, as part of a long-lasting relationship with the Luxembourg Trade and Investment Office in Tel Aviv.
Luxembourg’s AutoMobility Incubator is the latest proof of the country’s continuous commitment to smart mobility. Led by an Israeli manager, Erez Arye, the Incubator is the beating heart of the Luxembourg AutoMobility Campus. It integrates Luxembourg’s local automotive ecosystem – which already counts companies like Goodyear, IEE, and Cebi International – by offering a supportive environment for startups. "Our vision is to become one of the world's leading hubs for mobility innovation," says Arye.
As part of Luxembourg’s Technology Business Incubator by Technoport, the Automobility Incubator relies on three decades of experience in supporting new ventures – and an extensive international network. In addition, the incubator offers two unique advantages: dedicated data analysis resources providing insights and matchmaking opportunities to startups, and direct access to a larger European consortium of mobility operators.
Incubators are the cornerstone of tomorrow’s mobility – in Luxembourg and beyond. Companies in this sector need considerable support to prototype, test, and go to market, but the opportunities in the mobility sector are endless. “Mobility innovations are expanding boundaries,” says Schwarz. “Innovations sought after today in the mobility sector are solutions that support sustainability and decarbonization, efficiency and optimization, digitization and safety within the mobility sector,” she explains.
One of the sustainable innovations at the AutoMobility Incubator is an Israeli success story: smart materials and climate tech startup Voltcore. The company develops conductive polymer filaments for sustainable heating solutions, focusing on use cases in the mobility sector. This includes applications such as in-cabin and battery heating, which are particularly relevant in the EV space, where inefficiencies translate to driving range losses in cold weather. “For Voltcore, it was crucial to receive a plug-and-play industrial hall for our demo-plant and testing facilities compliant with the industry requirements,” says Vlad Batkhin, Voltcore Founder and CEO. “But together with it, we already received business partners and customers from various tiers of the local market,” he adds.
Living in Luxembourg: two Israeli Perspectives
Expanding into Luxembourg also means settling and living in a new country. Compared to its more famous European neighbours, Luxembourg offers unique advantages. First and foremost, its international character: English is the main language of the local business world, and the country benefits from a large international talent pool.
“The fact that 70% of Luxembourg City residents and almost 50% of the entire country are expatriates creates a truly global atmosphere. So, by living in Luxembourg, you’re automatically part of an international network, with direct links to the rest of Europe, the U.S., Southeast Asia, and more," says Arye, who moved from Singapore to Luxembourg with his family.
In Luxembourg, “you can do almost all paperwork in English and benefit from many national support programs,” says Batkhin. “Problem-solving dominates bureaucracy, and you can easily reach the right person and solve the business problem you have,” he adds. In fact, the size of the country offers easy access to regulators, which in turn allows the local government to constantly stay up-to-date with the beat of the markets and quickly adapt laws and incentives to maintain the country’s competitiveness on the global scene.
Due to its geographical location, Luxembourg has strong ties with its neighbours, particularly Germany and France. It also serves as one of the EU capitals, hosting institutions such as the EU Parliament, the European Investment Bank, and the Court of Justice of the European Union.
Are you interested in knowing more about Luxembourg’s opportunities in the mobility sector? Join the Luxembourg Trade & Investment’s upcoming Mobility Webinar (in collaboration with Startup Nation Central and EcoMotion Community) on Wednesday, 26 February 2025. Save your spot and don’t miss this opportunity to connect, learn, and grow.
If you want to learn about Luxembourg as your launch pad to Europe and our tailor-made support, please feel free to contact the Luxembourg Trade & Investment Office in Tel Aviv for further information.