The European Commission has allocated €852 million in grants to six battery cell manufacturing projects under its Innovation Fund, aimed at bolstering Europe’s position in electric vehicle (EV) supply chains and reducing import dependency. The funding follows a €1 billion battery-specific tender, part of the wider €4.6 billion IF24 programme announced in December 2024.
The six selected projects—located in France, Germany, Sweden, and Poland—are designed to promote innovation in sustainable production techniques and advanced battery chemistries. Collectively, they are expected to add around 56 GWh of annual capacity and reduce emissions by an estimated 91 million tonnes of CO₂ equivalent over ten years, the Commission said.
Two projects in France received a significant share of the funding. Automotive Cells Company (ACC), a joint venture between Stellantis, TotalEnergies, and Mercedes-Benz, will install five production lines for nickel-manganese-cobalt (NMC) cells across two French sites under its ‘ACCEPT’ initiative. The total capacity is expected to reach 15.7 GWh. Meanwhile, Verkor’s ‘AGATHE’ project will double its Dunkirk plant’s capacity from 8 to 16 GWh, integrating high levels of automation, artificial intelligence, and on-site pre-recycling.
Germany secured two grants. Porsche subsidiary Cellforce will scale up high-performance battery cell production to 1.6 GWh under its ‘CF3_at_Scale’ project, featuring high-nickel and silicon-based chemistries. Swiss battery manufacturer Leclanché, operating in Baden-Württemberg, will expand its PFAS-free, water-based electrode manufacturing line under the ‘WGF2G’ project to reach 2 GWh.
Sweden’s NOVO One, the proposed cell factory from Volvo-owned Novo Energy in Gothenburg, also made the list despite recent setbacks following Northvolt’s financial exit. The Commission noted the selection process was based on expert review of project maturity, emission-reduction potential, and financial viability.
The sixth project, ‘46inEU’ by LG Energy Solution, will scale up production of 46 mm cylindrical battery cells at its Polish facility. The cells, intended for platforms such as BMW’s Neue Klasse, represent one of the few European attempts to localise production of this increasingly popular EV cell format.
Grant agreements will be finalised in the third quarter of 2025, with disbursements linked to milestone achievements. While the initial round covered six of 14 eligible projects, the Commission said additional applicants may still qualify for development assistance from the European Investment Bank. All selected projects must commence operations before 2030.
Source: europa.eu