The European Commission has opened applications for its Battery Booster Facility, launching a funding programme that will provide up to €1.5 billion in interest-free loans to accelerate battery cell manufacturing for electric vehicles across Europe.
Applications for the programme are open until 30 September 2026 following the Commission’s approval of the initiative in June.
Funding Targets Large-Scale Battery Cell Production
The Battery Booster Facility will provide interest-free loans to support the construction and expansion of battery cell production facilities within the European Economic Area (EEA).
Under the programme, eligible projects may receive financing covering up to 60% of qualifying investment costs, with individual projects able to secure loans of up to €500 million.
The initiative is intended to strengthen Europe’s domestic battery manufacturing capacity as the region seeks to expand its electric vehicle supply chain and reduce dependence on imported battery cells.
Strict Eligibility Criteria
The European Commission said projects must manufacture battery cells intended for use in electric vehicles.
Applicants must also be developing their first large-scale commercial battery cell production facility for electric vehicles anywhere in the world, with projects required to be in the start-up phase when applications are submitted.
In addition, each proposed facility must have a planned annual production capacity of at least 10 gigawatt-hours.
The programme is designed to support new large-scale manufacturing investments rather than existing commercial production operations.
Major European Battery Projects Could Qualify
Given the programme’s eligibility requirements, several battery manufacturers currently expanding production in Europe could potentially qualify for support.
These include ACC, the battery joint venture backed by Stellantis, Mercedes-Benz and TotalEnergies, as well as Renault-supported Verkor and PowerCo, the Volkswagen Group’s battery manufacturing subsidiary.
The funding programme forms part of the European Union’s broader strategy to strengthen regional battery production, support the automotive industry’s transition to electric vehicles and enhance the resilience of Europe’s clean technology supply chains.