The European Commission has officially launched the new Battery Booster Facility. Leveraging as much as €1.5 billion from EU Emissions Trading System (ETS) revenues within the Innovation Fund, the Booster will assist battery cell makers in increasing production in Europe.
For the first time, the Commission will offer direct assistance through interest-free loans.
The Battery Booster Facility will stimulate private investment, speed up industrial implementation, and enhance Europe's industrial competitiveness and strategic independence in clean technologies.
Qualifying projects should create battery technology appropriate for electric vehicles (EVs), though off takers can utilize the products for alternative applications. Production needs to occur within the European Economic Area (EEA) and should have a minimum production capacity of 10GWh.
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The highest loan limit for each project is €500 million. The loan instrument has been selected instead of conventional grants to promote effective capital management, accelerate companies' path to commercial viability, and enhance private sector investments. Applications will be assessed according to their technical and financial readiness, as well as their contribution to the European economy.
After the acceptance of today’s Decision, the Commission will issue a call for proposals in the third quarter of 2026, tentatively for a duration of 6 weeks. The Commission intends to grant the initial projects under the Facility and execute the first payments by the conclusion of 2026.
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Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth says, "Europe's battery industry has made important steps forward but is now at a critical juncture. This is the right time to support them to reach commercial success. The Battery Booster Facility does exactly that: it steps in at the most critical and capital-intensive phase of industrial scale-up and does so in a way that is financially sound.”
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“It attracts private investment and drives companies towards full-scale production. This will support the European automotive industry to step up electric vehicle production with European batteries. Funded with the revenues from the Emission Trading System, it is turning the cost of emissions into the fuel for innovation," adds Wopke.