European Commission launches €1.5bn Battery Booster Facility
- Mobilises up to €1.5 billion from EU ETS revenues through the Innovation Fund.
- Provides interest‑free loans of up to €500 million per project for battery cell manufacturers.
- Eligible projects must produce EV‑suitable battery technology in the EEA with minimum 10 GWh capacity.
- Call for proposals planned in Q3 2026 (≈6 weeks); first awards and payments targeted before end‑2026.
Facility purpose
The European Commission established the Battery Booster Facility to mobilise up to €1.5 billion from EU Emissions Trading System (ETS) revenues held in the Innovation Fund to support scale‑up of battery cell manufacturing in Europe. For the first time the Commission will provide direct support via interest‑free loans rather than grants.
Eligibility and terms
Loans will target projects producing battery technology suitable for electric vehicles although off‑takers may use the output for other purposes. Production must be located in the European Economic Area and demonstrate a minimum production capacity of 10 GWh. The maximum loan per project is €500 million.
Selection criteria and rationale
Applications will be evaluated on technical and financial maturity and added value to the European economy. The loan instrument is intended to encourage sound capital management, speed commercial viability, attract private investment and complement existing private financing.
Timeline and context
The Commission will launch a call for proposals in Q3 2026, indicatively open for six weeks, and aims to award and make first payments before the end of 2026. The decision follows earlier Innovation Fund actions including a December 2024 €1 billion IF24 Battery call and a €200 million InvestEU top‑up, and builds on the 16 December 2025 Battery Booster Strategy and a March 2026 public consultation.
Source: European Innovation Fund