In a bold move to accelerate the green transition and secure its industrial future, the European Commission has announced €852m in funding for six cutting-edge EV battery manufacturing projects.
This landmark investment, sourced from the EU’s Emissions Trading System via the Innovation Fund, marks a major step in Europe’s push to become a global leader in EV battery production.
As demand for electric vehicles surges and the world shifts away from fossil fuels, the EU is doubling down on homegrown innovation to reduce emissions, boost competitiveness, and reduce reliance on imported technology.
Commenting on the funding, Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth, said: “The €852m investment in European EV battery manufacturing delivers on our goals to increase competitiveness and support pioneering decarbonisation technologies.
“With each Innovation Fund call, we’re demonstrating the key role of the EU Emissions Trading System in making our industry innovative and fit for the future.
“This first call dedicated to batteries shows we are committed to delivering on the Industrial Action Plan for the European Automotive Sector.
“We want the EU battery manufacturing to thrive thanks to innovative, clean technologies that will get us closer to materialising the clean industrial transition.”
Funding sparks a continental battery charge
The grants are the result of the EU’s first dedicated Battery Call, launched in December 2024 under the Innovation Fund.
Of 14 submissions from eight countries, six projects were chosen after rigorous evaluation by independent experts.
Selection criteria focused on innovation, GHG emissions reduction, technical and financial readiness, replicability, cost-efficiency, and strategic contributions to EU supply chain resilience.
These projects, aligned with the Clean Industrial Deal and the Industrial Action Plan for the European auto sector, are part of a broader €3bn EU initiative to fortify Europe’s battery ecosystem.
Six projects to lead the charge
The six selected projects, which will all begin operations before 2030, are:
- ACCEPT: Automotive Cells Company’s European Production Take-off (France)
- AGATHE: Verkor’s advanced gigafactory to temper GHG emissions (France)
- CF3_at_Scale: Cellforce Group’s high-performance manufacturing scale-up (Germany)
- NOVO One: NOVO Energy’s gigafactory project (Sweden)
- WGF2G: Leclanché’s 2 GWh Willstatt GigaFactory (Germany)
- 46inEU: LG Energy Solution’s cylinder cell production expansion (Poland)
Together, these projects will add an annual production capacity of roughly 56 GWh of EV battery cells and are forecast to cut greenhouse gas emissions by 91 million tonnes of CO₂ equivalent over their first decade.
Innovation meets sustainability
Beyond boosting output, the selected initiatives prioritise sustainability and cutting-edge EV battery manufacturing.
Each project will integrate next-generation technologies and sustainable processes, contributing to the EU’s broader climate neutrality objectives.
These gigafactories are not just assembly lines – they’re hubs of innovation focused on reducing the carbon footprint of both the batteries and the manufacturing process.
Support will cover both capital and operational expenditures, with phased disbursement linked to project milestones, including some funding made available pre-operation to spur construction and setup phases.
Why EU battery manufacturing matters
The ramp-up in EV battery manufacturing is a strategic necessity. As the global race for clean energy technology intensifies, Europe’s reliance on imported battery cells, primarily from Asia, presents economic and geopolitical vulnerabilities.
By investing in domestic EV battery production, the EU reduces its dependency on external suppliers, secures supply chains, and protects its auto industry from future disruptions.
Moreover, this initiative positions Europe as a leader in clean technology and advanced manufacturing, fostering high-quality jobs and driving regional economic growth.
Strengthening homegrown battery production also ensures the continent can meet the surging demand for EVs, driven by tightening emissions regulations and growing consumer adoption.
Without a robust internal battery supply, Europe risks falling behind in the transition to sustainable transport.
Road ahead for EU battery production
Grant agreements between project leaders and the European Climate, Infrastructure and Environment Executive Agency (CINEA) are expected to be finalised in Q3 2025.
As construction and development begin, these projects will serve as cornerstones of Europe’s push toward industrial decarbonisation, innovation, and economic resilience.
With bold investments in EV battery manufacturing, the EU is laying the foundation for a cleaner, stronger, and more self-sufficient future.
