European battery manufacturing to get $3.15bn

Several new funding announcements for Europe’s battery manufacturing sector have been announced by the European Commission and the EIB. First, the InvestEU program will receive a €200 million top-up loan from the European Union’s Innovation Fund.

There will also be €1 billion in grants allocated to support electric vehicle (EV) battery cell manufacturing projects, through the Innovation Fund. Those investments are designed to help Europe’s battery manufacturers transition from research and development to large-scale commercial deployment.

The commission and the EIB, the European Union’s investment bank, also hope the funding will help reduce market failures and build a resilient, competitive supply chain for energy storage in Europe.

The EIB envisages investing a further €1.8 billion into the wider battery value chain. That means the European Union is targeting a total investment of €3 billion into the battery industry.

A wide range of battery technologies will be supported, including the development of advanced materials, recycling methods, and component manufacturing. The funding will prioritize technological innovation beyond basic cell or pack assembly and excludes mining and extraction activity.

The EIB will conduct a periodic application process to evaluate whether operations are eligible under defined top-up loan criteria, as well as projects’ commercial and technical viability.

European officials have long called for investment in the region’s battery manufacturing sector. In December 2023, the commission’s then executive vice-president, Maroš Šefčovič said the sector needed around €3 billion.

Commenting on the commitment to finance battery innovation across the bloc, EIB vice president in charge of energy, Thomas Östros, said, “Investing in battery technology is not just an opportunity; it’s a necessity for Europe’s sustainable future. By supporting innovation in the sector, we are paving the way for a robust green economy that thrives on clean energy and drives job creation. Our commitment to fostering a competitive battery ecosystem will empower businesses and communities, ensuring that Europe leads the charge towards a climate-neutral future.”

Wopke Hoekstra, European commissioner for climate action, described battery production as “a vital priority for the clean energy transition in the transport and power sectors, and beyond.”

Details on applications for funding under the scheme can be found on EIB’s Venture debt webpage.