The European Commission announced on Tuesday 9 June the launch of the ‘Battery Booster Facility’, aimed at providing financial support to battery cell manufacturers in order to increase European production. Battery manufacturing is still currently dominated by China, “which accounts for more than 80% of the global total, while the European Union and the United States each account for 6 to 7%” in 2025, according to the International Energy Agency (IEA).
The Commission is therefore preparing to offer interest-free loans to battery manufacturers located in the European Economic Area. Eligible projects must involve battery technologies suited to electric vehicles and provide at least 10 GWh. Currently, more than half of the electric car battery market in the EU is controlled by Chinese producers, according to the IEA.
The maximum amount of the loan per project is €500 million and the Commission plans to mobilise a total of up to €1.5 billion through the Innovation Fund, coming from the revenues of the Emissions Trading System (ETS).
The call for proposals will be launched in the third quarter of 2026 and the first payments will be made before the end of the year. (Original version in French by Nadège Delépine)