Battery Production

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. Source:https://climate.ec.europa.eu/news-other-reads/news/new-battery-booster-set-inject-eu15-billion-european-battery-industry-2026-06-09_en

In the latest episode of “eMobility Insights”, electrive editor-in-chief Peter Schwierz talks to Prof. Heiner Heimes from PEM at RWTH Aachen University about the current state of European battery cell production. The podcast is in German. The discussion explains why many original expansion plans have since been significantly scaled back. According to electrive, announced cell production capacities in Europe have fallen from around 2,000 to below 1,000 gigawatt-hours per year. Heimes sees the main challenge less in building new factories than in ramping up production reliably. Key factors include quality, low scrap rates and sufficient capital. The podcast also addresses the consequences of the Northvolt case for confidence in European battery projects. At the same time, Heimes points to areas where Europe still has potential, including recycling, testing infrastructure, and module and pack production. PowerCo, Volkswagen’s battery subsidiary, is also mentioned as an important test case. The episode provides a sober assessment of what role Europe can still play in the battery value chain. The podcast is available here on electrive:Listen to the conversation with Heiner Heimes

Eni Industrial Evolution, a subsidiary of the Italian energy company Eni, and FIB, a unit of the Italian Seri Industrial Group, have signed an agreement to create an integrated supply chain for lithium iron phosphate batteries.  The project includes the production of battery cells and modules, as well as the assembly of stationary energy storage systems. Applications for industrial and commercial electric mobility are also planned. Later, recycling, material recovery, and the production of active cathode material could be added. Gigafactory planned by 2029 Under the agreement, FIB will expand its industrial operations at its Teverola site in the Caserta province. According to the companies, a facility for producing lithium iron phosphate cells is already operational there. Additionally, the joint venture Eni Storage System plans to complete an assembly line for utility-scale battery storage systems at its Teverola-Brindisi site by mid-2027. A second gigafactory is also planned by 2029. This facility is expected to produce cells and modules with an annual capacity of over 8 GWh. The companies aim to capture more than ten percent of the European stationary battery market. Under the agreement, Eni Industrial Evolution will acquire a 30 percent stake in a newly established company from FIB. FIB will retain a 70 percent stake. The new entity will focus on commercial development, procurement, and engineering. The fixed purchase price is 55 million euros, with provisions for potential price adjustments. Source:https://seri-industrial.it/wp-content/uploads/2026/05/PR_EIE_SERI.pdf

LG Energy Solution Vertech announced a supply agreement with DTE Energy for battery storage systems in Michigan. The agreement covers eight projects with a total capacity of one and a half gigawatts and a storage capacity of six gigawatt-hours. The systems are scheduled to be delivered within two years. Battery cells made in North America LG Energy Solution plans to assemble the systems using battery cells produced in Michigan, as well as in other facilities in the United States and Canada. DTE Energy cites the agreement in connection with the growing demand for electricity driven by new data centers. For example, DTE mentions the approved contract for an Oracle data center in Saline Township. These battery storage systems, financed by Oracle, are expected to meet the company’s share of Michigan’s Clean Energy Standard for battery storage by 2030. Source:https://news.lgensol.com/company-news/press-releases/4978/

The South Korean battery manufacturer SK On is withdrawing from its joint battery partnership with Ford in the U.S., and will independently operate its Tennessee plant going forward. The former BlueOval-SK facility in Tennessee has been renamed “SK On Tennessee.” In return, Ford will assume sole control of two battery plants in Kentucky. The restructuring was completed five months after the dissolution of the joint venture. The partnership was founded in 2022 when the outlook for electric vehicle demand was much more optimistic. Financial Relief for SK On For SK On, the primary focus of the separation is financial relief. The company expects the dissolution of the joint venture to reduce its debt by approximately 5.4 trillion won, equivalent to about $3.6 billion. Additionally, SK On anticipates annual savings of approximately $180 million on interest expenses. The new structure is also expected to reduce depreciation costs. The company therefore presents the decision as a step toward strengthening its financial structure and managing its U.S. operations more efficiently. Sources:https://en.yna.co.kr/view/AEN20260521011400320https://askinno.com/global/archives/154659

The Chinese battery manufacturer Svolt Energy aims to begin mass production of semi-solid-state batteries by September of this year. According to the company, the cost is expected to be comparable to that of conventional lithium-ion batteries with liquid electrolytes. Several vehicle models are set to be equipped with the new cells by the end of September. One variant scheduled to enter mass production will reportedly have a capacity of 100 kilowatt-hours. This information comes from Yang Hongxin, Svolt’s chairman and CEO. In a video posted on Weibo, he explained that a key focus of the cells is high operational safety. Interim Solution Before Solid-State Batteries Semi-solid-state batteries use both liquid and solid electrolytes to transport ions between the cathode and anode. This technology is considered an intermediate step on the path to solid-state batteries, which operate exclusively with solid electrolytes. Commercializing the latter is still considered difficult. Yang described the path to mass production as long. Other major battery manufacturers are also continuing to work on all-solid-state batteries. According to reports, CATL and BYD are initially aiming for small-scale production by 2027. Source:https://cnevpost.com/2026/05/19/svolt-plans-mass-produce-hybrid-solid-liquid-batteries-september-liquid-battery-costs/

The newly established Ford Energy and EDF Power Solutions North America have signed a five-year framework agreement for battery storage systems. Under the agreement, EDF can purchase up to 4 GWh of DC-block systems from Ford Energy each year. Over the entire term, this represents a potential volume of up to 20 GWh. The first deliveries are scheduled for 2028. Ford Repurposes Previous EV Battery Plans The adoption of electric vehicles is proceeding more slowly than many manufacturers expected, particularly in the U.S. Consequently, automakers are increasingly planning to use infrastructure originally intended for EV batteries for stationary energy storage.  Ford had already announced plans to launch its energy storage business in December 2025. That announcement followed a $19.5 billion write-down on its electric vehicle programs. The company cited weaker-than-expected demand, high costs, and regulatory changes as the reasons for the write-down. At that time, Ford announced that it would repurpose its existing battery manufacturing capacity in Glendale, Kentucky, for the battery storage systems market. The establishment of the subsidiary Ford Energy was formalized this month. As part of the announcement, Ford stated its intention to provide at least 20 GWh annually. The “Ford Energy DC Block” is a 20-foot containerized battery storage system. According to the company, each unit has a capacity of 5.45 MWh. It uses prismatic LFP cells with a capacity of 512 Ah. Variants with two- or four-hour discharge times are available. Sources:https://www.fromtheroad.ford.com/us/en/articles/2026/ford-energy-edf-power-solutions-north-americahttps://www.fromtheroad.ford.com/us/en/articles/2026/introducing-ford-energyhttps://www.businesswire.com/news/home/20251215095165/en/Ford-Follows-Customers-to-Drive-Profitable-Growth-Reinvests-in-Trucks-Hybrids-Affordable-EVs-Battery-Storage-Takes-EV-Related-Charges

The Chinese battery manufacturer Eve Energy received an order for 8 GWh of energy storage batteries from India. Their contract partner is the energy company Godawari New Energy Private Limited.  Additionally, the two companies are planning a long-term partnership. Consequently, the total volume of the partnership could rise to 60 GWh over the next five years. India Gains Importance for Energy Storage Eve Energy describes India as one of the world’s fastest-growing markets for new energy technologies. As the share of renewable energy increases, so does the need for grid stability and solutions for frequency and load management. The planned project will use 628-Ah energy storage batteries. These batteries are tailored for high safety standards and easy integration into energy storage systems, helping to reduce costs over the projects’ entire lifecycle.  In collaboration with GNEPL, Eve Energy aims to accelerate the expansion of energy storage projects in India and support the transition of the local energy supply. Source:https://cnevpost.com/2026/05/12/eve-energy-secures-8-gwh-energy-storage-order-from-india-gnepl/

Tesla plans to significantly expand battery cell production at its Grünheide facility near Berlin. According to the company, an additional $250 million will be invested to increase annual cell capacity to 18 gigawatt-hours. This more than doubles Tesla’s previous target of 8 gigawatt-hours, which was announced in December. As part of that announcement, Tesla had already promised to invest nearly one billion euros in the factory. The company says the expansion will also increase staffing needs. Tesla expects to have more than 1,500 employees in battery cell production alone. Tesla currently employs around 11,000 people in Grünheide. The plant is Tesla’s only Gigafactory in Europe. Nevertheless, battery cell production in Grünheide remains well below Elon Musk’s original plans. In 2020, Tesla announced plans to build the world’s largest battery cell factory in Berlin, with an initial annual capacity of 100 gigawatt-hours. A later expansion to up to 250 gigawatt-hours was also envisioned. However, the company halted these plans in 2022 after U.S. subsidy programs became more attractive. Greater Integration Planned Tesla is linking the expansion of cell production with greater vertical integration at the site. According to Tesla, battery cells and vehicles will be produced entirely in Grünheide starting in 2027. Tesla argues that this will increase the stability of European supply chains. At the same time, however, the company acknowledges the challenging economic landscape for cell production in Europe. Tesla claims that, in international competition with China and the U.S., the manufacture of battery cells is currently hardly economically viable. Sources:https://www.reuters.com/business/autos-transportation/tesla-invest-250-million-battery-plant-outside-berlin-2026-05-12/https://eletric-vehicles.com/tesla/tesla-more-than-doubles-berlin-battery-cell-output-target-to-18-gwh