EU Innovation Fund Allocates €852 Million to Six Key EV Battery Manufacturing Projects Across Europe
Key Insights
The European Commission has granted €852 million from its Innovation Fund to six pioneering electric vehicle battery cell manufacturing projects.
These strategic investments aim to accelerate the growth of the EU's battery industry, reduce import dependence, and foster clean technology leadership.
Projects located in France, Germany, Sweden, and Poland are projected to reduce 91 million tonnes of CO2 equivalent emissions over ten years.
Upon completion, these initiatives will collectively add approximately 56 GWh of EV battery cell manufacturing capacity annually to the European market.
The European Commission announced today a significant allocation of €852 million from its Innovation Fund, sourced from EU Emissions Trading System (EU ETS) revenues, to six pioneering electric vehicle (EV) battery cell manufacturing projects. This funding, following a targeted Battery Call launched in December 2024, aims to substantially accelerate the growth and investment within the EU’s domestic battery manufacturing industry, marking a concrete step towards the bloc’s decarbonization goals and enhanced industrial competitiveness.
These strategic investments are designed to foster innovation in EV battery cell production and facilitate the deployment of advanced, sustainable manufacturing techniques and technologies. The selected projects are pivotal in supporting Europe’s transition to a clean, competitive, and resilient industrial base, simultaneously reducing import dependencies and cultivating leadership in clean technologies, in line with the Industrial Action Plan for the European automobile sector and the Clean Industrial Deal.
The six projects selected for funding include ACCEPT Automotive Cells Company European Production Take-off (France), AGATHE – Advanced Gigafactory Aiming at Tempering greenhouse gases Emissions (France, Verkor), CF3_at_Scale – Scaling of innovative manufacturing processes for high-performance cells (Germany, Cellforce Group), NOVO One Gigafactory (Sweden, NOVO Energy), Willstatt GigaFactory 2 GWh (Germany, Leclanche), and Powering the Future – 46 Cylinders, Infinite Possibilities in Europe (Poland, LG Energy Solution).
All projects are slated to commence operations before 2030, receiving support that encompasses both capital and operational expenditure, disbursed upon the achievement of predefined milestones. A portion of the funding may be released during the investment phase to facilitate project development. Over their initial decade of operation, these initiatives are projected to collectively reduce greenhouse gas emissions by approximately 91 million tonnes of CO2 equivalent. Upon completion, their combined manufacturing capacity is expected to reach around 56 gigawatt-hours (GWh) of EV battery cells annually, significantly boosting Europe's domestic supply.
Successful applicants are anticipated to finalize their grant agreements with the European Climate, Infrastructure and Environment Executive Agency (CINEA) in the third quarter of 2025. Beyond these six, other promising but less mature projects may receive development assistance from the European Investment Bank. The Innovation Fund’s 2024 Battery Call attracted 14 proposals from eight countries, with 13 meeting eligibility criteria. The selection process, conducted by independent experts, evaluated projects based on innovation, GHG emission reduction potential, operational and financial maturity, replicability, contributions to EU supply security, and cost efficiency. Since 2021, the Innovation Fund, leveraging EU ETS revenues, has committed approximately €12 billion to over 200 innovative projects across the European Economic Area, reinforcing its role in driving Europe's climate neutrality transition and strengthening the battery value chain against global competition and supply vulnerabilities.