EV battery production is set to receive a major boost from the European Union, with a new €1.5 billion zero-interest financing facility designed to help manufacturers scale up industrial battery cell production, strengthen Europe's supply chain and reduce dependence on imports from China.
How the EU plans to strengthen Europe’s battery manufacturing industry
EV battery production remains one of the weakest links in Europe’s automotive industry. Despite growing demand for electric vehicles, the continent still lacks sufficient manufacturing capacity to compete effectively with imported battery cells, particularly those produced in China.
To address this challenge, the European Commission has launched the Battery Booster Facility, a strategic financing programme that will provide €1.5 billion in zero-interest loans to companies developing industrial battery cell manufacturing projects within the European Economic Area (EEA).
Funded through revenues from the EU Innovation Fund, the initiative aims to reinforce Europe’s strategic autonomy across the electric vehicle value chain. Companies have until 30 September 2026 to submit their applications. Brussels’ long-term objective is to ensure that an increasing share of battery cells is not only assembled, but also designed, engineered and manufactured entirely within European supply chains.
A financial bridge to industrial scale-up
Established in June 2026 as the operational pillar of the Battery Booster Strategy, the facility targets one of the most challenging phases of European battery manufacturing: the industrial ramp-up.
This critical transition, between pre-series production and full-scale commercial manufacturing, is often characterised by rapidly rising capital and operating costs while revenues remain limited. The resulting liquidity gap represents one of the greatest obstacles for innovative battery projects.
To reduce investment risks, the programme offers preferential financing covering up to 60% of eligible costs, with a maximum loan of €500 million per project. The scheme is expected to attract additional private investment while accelerating the deployment of large-scale EV battery production capacity across Europe.
Eligibility requirements for the funding programme
The call is open to projects manufacturing high-performance battery cells, primarily intended for electric vehicles.
To qualify for the Battery Booster Facility, applicants must meet the following eligibility criteria:
- Manufacturing facilities must be located within the European Economic Area.
- The project must already be in the industrial ramp-up phase when the call opens.
- The plant must represent the applicant’s first fully commercial-scale EV battery gigafactory anywhere in the world.
- The facility must have a planned annual production capacity of at least 10 GWh.
Applications will be assessed by a panel of European experts based on the project’s technical and financial maturity, together with its expected contribution to strengthening the resilience and competitiveness of the European battery supply chain.
How companies can apply
Companies seeking funding under the programme must complete two sequential steps:
- Complete the EU Survey, which serves as an initial eligibility assessment.
- Submit the full application, including technical documentation and financial forecasts, through a secure online submission platform that will be activated following completion of the survey.
Throughout the application period, applicants will have access to a dedicated email helpdesk. Frequently asked questions will be published and regularly updated in a public Q&A document to support all participants.
