As Europe’s battery value chain faces economic challenges, including obstacles to scaling up gigafactories, multiple support mechanisms are being deployed. These financial incentives aim to prioritize EU-based projects and address barriers to industrial production expansion.
Boosting Net-Zero Technologies and EV Battery Manufacturing Across Europe
The European Commission’s Innovation Fund has opened six calls for proposals with a combined budget of €3.4 billion, aimed at accelerating innovative decarbonisation technologies across Europe.
For the first time, a dedicated €1 billion funding call (IF24 Battery) focuses specifically on electric vehicle battery cell manufacturing. This initiative supports projects developing innovative EV battery cells or implementing advanced manufacturing techniques, processes, and technologies. This funding opportunity is part of a broader strategy to drive investment in technologies critical to Europe’s clean energy transition and long-term competitiveness.
In addition, a €700 million call focused on “Cleantech Manufacturing” seeks to address financing gaps within the EU cleantech sector. This initiative also targets manufacturing within the battery value chain, complementing the IF24 Battery call and reinforcing efforts to strengthen Europe’s clean energy ecosystem.
Strengthening Investment Through Strategic Partnerships
To further bolster investments in the EU’s battery manufacturing sector, the European Commission has partnered with the European Investment Bank (EIB). This collaboration includes a €200 million loan guarantee top-up to the InvestEU programme, funded by the Innovation Fund. The financial support is intended for innovative projects along the European battery value chain and will facilitate additional EIB venture debt operations over the next three years.
As part of this partnership, the EIB plans to invest an additional €1.8 billion in the broader battery value chain. Combined with public support, this will result in €3 billion directed toward fostering a competitive and sustainable European battery industry.
Source: EIT InnoEnergy
