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The Battery Booster Facility, formally established under Decision C(2026) 3828/2, will generate up to €1.5 billion in revenue from the EU Emissions Trading System (ETS) to support battery cell manufacturers across Europe
The Battery Booster Facility will provide direct, interest-free loans to companies to stimulate private investment, boost industrial deployment, and enhance Europe’s competitiveness in the clean technology sector.
Targeting industrial scale-up
The new Battery Booster Facility is designed to help battery manufacturers navigate the most capital-intensive stage of industrial growth. Eligible projects must produce batteries suitable for electric vehicles, though the products may also be used for other applications. To qualify, production facilities must be located within the European Economic Area (EEA) and have a minimum capacity of 10 gigawatt-hours (GWh).
The maximum loan per project is €500 million, and applicants will be evaluated on both technical and financial readiness, as well as their potential contribution to the European economy. The approach of offering loans rather than grants encourages companies to manage capital responsibly, achieve commercial viability more quickly, and leverage additional private-sector investment.
Timeline for application
The European Commission plans to launch a call for proposals in the third quarter of 2026. The application window is expected to last around six weeks, with the first projects selected and payments made before the end of the year. This rapid deployment reflects the EU’s ambition to accelerate domestic battery production and secure the supply chain for electric vehicles.
The Battery Booster Facility builds on several prior EU efforts to strengthen the battery industry. In December 2024, the Innovation Fund launched a €1 billion call for proposals to support the manufacturing of electric vehicle batteries. At the same time, the European Commission and European Investment Bank (EIB) added €200 million to the InvestEU guarantee program to further stimulate investment in European battery production.
These efforts are part of a plan to deploy innovative, net-zero technologies using revenues from the EU ETS. By turning the cost of emissions into funding for clean technology, the EU is linking climate action with industrial development.
The EU aims to create a self-sufficient and resilient battery value chain, from raw materials to recycling. Strengthening local production reduces strategic dependencies on external suppliers, enhances competitiveness, and supports the transition to electric mobility.
By providing targeted support at the critical phase of industrial-scale-up, the Battery Booster Facility aims to ensure Europe remains a global leader in battery technology while meeting the growing demand for electric vehicles and other clean energy applications.
With the launch of the Battery Booster Facility, Europe is showing its commitment to building industrial strength in the clean technology sector. By combining public funding with private investment, the EU hopes to drive full-scale domestic battery production, secure the automotive supply chain, and foster long-term economic growth.