EU mobilizes €1.5 billion in interest-free loans for European battery cell manufacturing

The European Commission has launched a call for proposals for the Battery Booster Facility, a funding instrument providing up to €1.5 billion ($1.73 billion) in interest-free loans to support battery cell manufacturing projects in the European Economic Area (EEA).

The initiative aims to accelerate the industrial rollout of Europe’s battery value chain and help new manufacturing projects overcome the production ramp-up phase and reach full commercial operation.

The European Commission established the Battery Booster Facility on June 9, 2026, as part of the Battery Booster Strategy adopted on December 16, 2025. The call for proposals was published on July 28 and is funded through the EU Innovation Fund, which derives its resources from revenues generated by the auctioning of emission allowances under the European Union Emissions Trading System (EU ETS).

The facility is designed to address one of the most challenging stages in the development of a new battery factory: the production ramp-up period. During this phase, plants must progressively increase output to reach commercial production levels while facing high investment and operating costs.

The Commission may award up to €500 million per project, with funding covering up to 60% of eligible costs.

Minimum annual capacity

The call sets out specific eligibility criteria. Funding is available for battery cell manufacturing projects for electric vehicle applications located within the EEA.

Projects must be in the ramp-up phase when the call opens and must represent the applicant’s first full-scale commercial production facility for electric vehicle battery cells worldwide.

Another key requirement is industrial scale. Facilities must have a projected annual production capacity of at least 10 GWh. Applications will be evaluated based on criteria including the project’s technical and financial maturity and its contribution to the European battery ecosystem.

Companies interested in applying have until September 30 to submit their proposals.