EU Launches €1.5B Loan Scheme for EV Battery Makers

EU Launches €1.5B Loan Scheme for EV Battery Makers
The European Commission's Battery Booster Facility invites EEA-based proposals by September 30, 2026, offering up to €1.5 billion in interest-free loans to fund first full-scale EV battery cell projects aiming for ≥10 GWh annual capacity.

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The European Commission has opened a call for proposals under its Battery Booster Facility, offering up to €1.5 billion in interest-free loans to support battery cell manufacturing projects across the European Economic Area. Funded by the Innovation Fund with revenues from the EU Emissions Trading System, the facility aims to bolster Europe’s battery production capacity and resilience in the battery value chain. Applications must be submitted by September 30, 2026.

Established in June 2026 as part of the broader Battery Booster Strategy, the facility targets projects transitioning from pre-series production to full commercial operation. By providing financing during this critical ramp-up phase, the Commission seeks to help innovative projects scale production, attract private investment, and accelerate deployment of new manufacturing capacity in Europe.

Eligible proposals must be for battery cell manufacturing designed for electric vehicle applications, based in the European Economic Area, and at the ramp-up stage at the time the call opens. Each project must represent the applicant’s first full commercial-scale electric vehicle battery cell production and plan for an annual capacity of at least 10 GWh. Interest-free loans can cover up to 60 percent of eligible project costs, with a per-project ceiling of €500 million.

Submitted applications will be evaluated against criteria that include technical and financial maturity, as well as the project’s added value for the European battery ecosystem. The facility’s design reflects the Commission’s objective to fast-track strategic investments that strengthen Europe’s industrial competitiveness in battery manufacturing and support the transition to sustainable, low-emission transport.

By addressing a key financing gap at the ramp-up stage, the Battery Booster Facility complements other EU initiatives aimed at enhancing research and innovation, fostering supply chain integration, and reinforcing the continent’s position in the global battery market.

Source: European Commission Single Market and Economy News

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