The European Union will fund five battery cell production projects under its Innovation Fund after Porsche subsidiary Cellforce withdrew its application, reducing the overall grant amount from €852 million to €643 million, the European Commission said on Friday.
The Commission had initially selected six proposals in July under the first Innovation Fund call dedicated to batteries. The decision changed when the European Climate, Infrastructure and Environment Executive Agency (CINEA) signed contracts only with five project sponsors. Cellforce cancelled its “CF3_at_Scale” project following a major restructuring at Porsche, which included job cuts at the subsidiary.
The remaining five projects are expected to come online between 2027 and 2029. Launched in December 2024, the “IF24 Battery” call is part of a €4.6 billion package to boost European capabilities in net-zero technologies, electric-vehicle batteries and renewable hydrogen. The Commission said during the summer that the selected initiatives represent “strategic investments that will support Europe’s transition to a clean, competitive, and resilient industrial base, reducing at the same time the dependence on imports and fostering the development of clean technologies, and industrial leadership.”
France takes two of the approved projects
Two projects are based in France. Automotive Cells Company (ACC)—a joint venture between Stellantis, TotalEnergies and Mercedes-Benz—will proceed with its ACCEPT project, which includes five new NMC battery cell production lines across two French sites, providing 15.7 GWh of combined capacity. The development signals a shift away from ACC’s earlier expansion plans in Germany and Italy, where proposed factories in Kaiserslautern and Termoli have been paused.
Renault’s battery partner Verkor secured funding for its AGATHE project, which will double capacity at its Dunkirk gigafactory from 8 GWh to 16 GWh. The expansion will feature increased automation, artificial intelligence-driven processes and on-site “pre-recycling” facilities aimed at lowering costs and improving sustainability.
Germany, Sweden and Poland also represented
Germany’s only remaining approved project is WGF2G, backed by Swiss manufacturer Leclanché, which plans to scale its German operations to 2 GWh using a PFAS-free, water-based production process applicable to both NMC and LFP cells.
Sweden’s contribution comes through the NOVO One project, intended to support the Novo Energy cell factory. The venture—originally a joint project with Northvolt—has since been taken over entirely by Volvo following Northvolt’s insolvency. Despite uncertainties, EU evaluators judged the effort sufficiently mature across technical, operational and supply-security criteria.
LG Energy Solution’s 46inEU project in Poland rounds out the list, aiming to produce 85 million units of 46-millimetre cylindrical cells amounting to 11.5 GWh. These high-volume cells, increasingly used in electric vehicles, are largely manufactured outside Europe. BMW’s upcoming Neue Klasse platform is expected to be the first in Europe to use the format.
More projects may still qualify for support
The Commission said funding will be disbursed gradually as milestones are met, covering both investment and operational phases. Fourteen applications from eight countries were submitted under the IF24 Battery programme. Projects not selected for immediate funding may still receive development assistance from the European Investment Bank.
Source: Electrive