The European Commission has formally established the “Battery Booster Facility.” Through this new program, up to €1.5 billion from EU emissions trading revenues will be invested in the European battery industry. The goal is to support battery cell manufacturers as they increase production in Europe.
This is the first time the Commission will provide direct support in this sector in the form of interest-free loans. Grants are not planned. According to the Commission, the loan model is intended to contribute to sound capital planning, complement private investment, and help companies achieve economic viability more quickly.
Focus on Electric Vehicles and Production in the EEA
Eligible projects produce battery technology suitable for electric vehicles. According to the guidelines, these products may also be used for other applications. Production must be located within the European Economic Area. Additionally, a minimum capacity of 10 gigawatt-hours has been set.
Loans may not exceed 500 million euros per project. Applications will be evaluated based on technical and financial maturity, as well as economic added value for Europe. The Commission plans to launch a call for proposals in the third quarter of 2026. It is expected to last six weeks. The first project commitments and payments are expected before the end of 2026.
The new facility is linked to previous measures by the Innovation Fund. These include a 2024 call for proposals worth one billion euros for electric vehicle battery cell manufacturing, as well as an additional 200 million euros for investments in European battery production.
