The European Commission has opened a €1.5bn funding competition designed to accelerate European battery manufacturing by supporting companies as they scale electric vehicle (EV) battery cell production.
The scheme, delivered through the Battery Booster Facility and financed by the Innovation Fund, will provide interest-free loans to eligible projects across the European Economic Area (EEA).
Applications are now being accepted and will remain open until 30 September 2026. The funding is intended to help manufacturers overcome one of the biggest obstacles to commercial success: securing investment during the transition from demonstration-scale production to full industrial output.
The Commission expects the initiative to strengthen Europe’s battery industry by encouraging new production capacity, attracting private capital and improving the resilience of the region’s battery supply chain.
Closing a critical financing gap
While demand for EV batteries continues to rise, many manufacturers face significant financial pressure before production reaches commercial scale.
Large capital requirements, combined with limited revenue during the ramp-up period, can delay or even prevent projects from progressing.
The Battery Booster Facility, introduced earlier this year as part of the EU’s Battery Booster Strategy, has been established to address this challenge.
Rather than providing grants, the programme offers interest-free loans that allow companies to expand manufacturing while reducing the cost of financing.
Successful applicants can receive support covering up to 60% of eligible project costs, with individual loans of up to €500m.
Focus on first commercial-scale EV battery plants
The funding call is reserved for battery cell manufacturing projects serving the electric vehicle market and located within the EEA.
To be considered, applicants must be developing their first full-scale commercial EV battery cell production facility anywhere in the world.
Projects must already be progressing through the industrial ramp-up stage and be designed to achieve an annual production capacity of at least 10GWh.
By concentrating support on first-of-a-kind commercial facilities, the Commission hopes to accelerate the emergence of new large-scale manufacturers within Europe.
Projects will compete on quality and industrial impact
Applications will not be awarded solely on the basis of size. Instead, the Commission will assess each proposal against a range of technical, financial and strategic criteria.
Reviewers will consider whether projects are sufficiently mature to move into commercial production, whether financing plans are robust, and how each investment would strengthen the wider European battery ecosystem.
The latest funding call reflects the EU’s broader industrial strategy to expand European battery manufacturing, reduce dependence on overseas suppliers and build a competitive domestic industry capable of supporting Europe’s transition to electric mobility and clean energy technologies.
