EU allocates €852 million to support six groundbreaking electric vehicle battery initiatives
The European Commission has announced investments of €852 million in six electric vehicle (EV) battery projects as part of a broader initiative to transition to climate neutrality and strengthen Europe's battery value chain. These investments, funded by revenues from the EU Emissions Trading System (EU ETS), are part of the first Battery Call under the Innovation Fund, launched in December 2024.
The projects, located in France, Germany, Sweden, Poland, and Germany, aim to accelerate the growth of the EU's battery manufacturing industry. Upon completion, they will have a combined manufacturing capacity of around 56 gigawatt-hours (GWh) of EV battery cells per year. The projects support innovation in the production of EV battery cells and are expected to begin operations before 2030.
The Innovation Fund, which has committed a total budget of around €12 billion since 2021, aims to drive investment in low-carbon and net-zero technologies. The Battery Call for proposals, part of a broader initiative to strengthen Europe's battery value chain, offers up to €3 billion in financial support.
The European Investment Bank also offers project development assistance to promising but insufficiently mature battery projects. The targeted Battery Call seeks to address economic and technical barriers in the battery sector, particularly in the context of global competition and supply chain vulnerabilities.
The second Battery Call under the Innovation Fund for EV battery cell manufacturing projects in the EU was launched on 3 December 2024. This call, referred to as the IF24 Battery call, allocated €1 billion specifically to strengthen Europe's EV battery cell manufacturing capacity, technological leadership, and supply chain resilience. Successful applicants are expected to sign their respective grant agreements with the European Climate, Infrastructure and Environment Executive Agency (CINEA) in the third quarter of 2025.
Over the first 10 years of operation, these projects are projected to reduce greenhouse gas (GHG) emissions by approximately 91 million tonnes of CO equivalent. To date, the Innovation Fund has supported over 200 innovative projects across the European Economic Area (EEA).
These investments mark a significant step towards the EU's goal of becoming climate neutral by 2050, as well as strengthening Europe's position in the global race for EV battery technology.
[1] European Commission. (2024). Innovation Fund 2024: Boosting Innovation and Production Capacity in Battery Cell Manufacturing. Retrieved from
- The European Commission's investments in EV battery projects, totaling €852 million, are part of an effort to advance 'technology' and technology leadership, particularly in the field of 'electric vehicle' battery cells.
- These investments, funded by revenue from the EU Emissions Trading System (EU ETS), also aim to drive 'investing' in low-carbon and net-zero technologies through the Innovation Fund.
- The European Investment Bank, alongside the Innovation Fund, is providing project development assistance to promising but insufficiently mature battery projects to address economic and technical barriers within 'data-and-cloud-computing'-dependent industries.
- The European Commission's commitment to addressing climate change and moving towards climate neutrality includes growing the 'environmental-science' sector, such as the battery manufacturing industry, to reduce greenhouse gas (GHG) emissions by approximately 91 million tonnes of CO equivalent.
