The European Commission has officially launched the new Battery Booster Facility (C(2026) 3828/2). The new instrument will mobilise up to €1.5 billion from revenues generated under the EU Emissions Trading System (ETS) through the Innovation Fund, providing support to battery cell manufacturers across Europe. For the first time, the Commission will offer direct support in the form of interest-free loans.
The Battery Booster Facility aims to attract additional private investment, accelerate the development of manufacturing capacity and strengthen the competitiveness of Europe’s clean technology industry. Funding will be available for projects producing battery technologies primarily intended for electric vehicles, although the batteries may also be used in other applications.
To be eligible, projects must be located within the European Economic Area (EEA) and have a minimum production capacity of 10 GWh.
The maximum loan amount per project is €500 million. According to the Commission, the decision to use loans rather than grants is intended to encourage more efficient capital management, help companies achieve commercial viability more quickly and leverage additional private-sector investment. Applications will be assessed based on their technical and financial readiness, as well as their contribution to the European economy.
The call for proposals is expected to be launched in the third quarter of 2026, with an application window of approximately six weeks.
The European Commission plans to approve the first projects and make the first payments under the Facility before the end of 2026.
