The European Commission has launched a call for proposals offering up to €1.5 billion in interest-free loans to support the ramp-up of electric vehicle battery cell manufacturing across the European Economic Area. Available through the Battery Booster Facility, the financing is intended to help manufacturers navigate the capital-intensive period between pre-series production and full commercial operation. The facility is financed through the EU Innovation Fund using revenues from the auctioning of allowances under the EU Emissions Trading System. Applications can be submitted until September 30, 2026.

Eligible projects must manufacture battery cells suitable for electric vehicle applications and be physically located within the EEA, although the resulting cells may also be supplied for other uses. Each production site must already be in its ramp-up phase when the call opens and represent the final recipient’s first full commercial-scale EV battery cell production project globally. In addition, the majority shareholder of the final recipient cannot exercise decisive influence over an existing full commercial-scale EV battery cell manufacturing operation anywhere in the world.

Components Source Network editorial stock photo showing a close-up of a lithium-ion battery cell for EV + Battery Tech Monthly coverage of European battery manufacturing.

A close-up view of a lithium-ion battery cell. The European Commission Battery Booster Facility will provide up to €1.5 billion in interest-free loans to support EV battery cell manufacturing across the European Economic Area. (Components Source Network editorial stock photo)

Projects must have a planned nominal annual production capacity of at least 10 GWh, based on operating conditions that assume 100 percent overall equipment effectiveness. Battery module manufacturing may be included when battery cell production remains the primary project activity, but projects limited to assembling battery cell components or stacks without substantively transforming those components are not eligible. Successful applicants may receive an interest-free loan covering up to 60 percent of eligible ramp-up costs, with support limited to €500 million per final recipient.

Eligible expenses must be incurred after the call opens and no later than 48 months after the loan agreement is signed. These costs may include personnel, the acquisition and processing of materials, energy, supplies, contracted work and services, and project-related capital expenditures. The Commission requires applicants to demonstrate that private financing mobilized for the production site exceeds the requested EU contribution, reinforcing the facility’s objective of using public support to attract additional private investment.

Applications will be ranked based on the financial maturity of the project and the economic viability of the final recipient, including its ability to execute its business plan and meet the required loan repayment schedule. The Commission will also assess technical maturity, the credibility of the proposed design and implementation plan, and the project’s ability to reach full operating capacity within the required timeframe. Consideration will also be given to each project’s contribution to the European economy, including supply chain resilience, the sourcing of components and manufacturing equipment, critical raw material consumption, intellectual property, engagement with European stakeholders and research centers, workforce development and support for European downstream industries. All projects must comply with the EU do no significant harm principle.

The European Commission formally established the Battery Booster Facility on June 9, 2026, following the adoption of the broader Battery Booster Strategy in December 2025. The facility is intended to attract private investment, accelerate industrial deployment and strengthen Europe’s battery manufacturing capacity and strategic autonomy. It complements other EU investments across the battery value chain, including up to €300 million for critical raw material projects in addition to the €1.5 billion available to battery cell manufacturers.

For complete eligibility requirements and application information, please review the European Commission Battery Booster Facility and Commission Decision (EU) 2026/1283.

Source: European Commission

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Molly Bakewell Chamberlin
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