Executive summary
Up to €1.5 billion from EU Emissions Trading System (ETS) revenues under the Innovation Fund will be mobilised through the Booster to support battery cell manufacturers in scaling up production in Europe. For the first time, the Commission will provide direct support in the form of interest-free loans.
The aim is to stimulate private investment, speed up industrial deployment and strengthen Europe’s industrial competitiveness and strategic autonomy in clean technologies. Eligible projects must produce battery technology suitable for use in electric vehicles (EVs), although off takers may use the products for other purposes. Production must be located within the European Economic Area (EEA), with a minimum production capacity of 10GWh.
A loan instrument has been selected instead of traditional grants (maximum loan amount per project is €500 million) to encourage sound capital management, support faster progress toward commercial viability, and complement private sector investment. Applications will be assessed based on technical and financial maturity as well as their added value to the European economy.
Next steps
Following the adoption of the Decision, the Commission will launch a call for proposals in Q3 2026, indicatively for 6 weeks. The Commission aims to award the first projects under the Facility and make the first payments before the end of 2026.
Executive summary
The document sets out immediate and medium-term actions across five areas: EU coordination, consumer protection, clean energy acceleration, energy system upgrades, and investment mobilisation.
AccelerateEU intends to provide Member States and local authorities with immediate support to protect households and industries from rising costs. At the same time, it supports the EU’s goal to achieve energy independence, through a decarbonised and resilient energy system based on homegrown clean energy and electrification.
It sets out 5 key areas of action:
1. Closer EU coordination
- Better coordination between Member States on gas storage filling, possible oil stock releases and on the use of flexibilities to prevent shortages, including the safeguarding of jet fuel and diesel supplies.
- A new Fuel Observatory will map supply, prioritise alternative jet fuel sourcing, and optimise distribution.
- The Commission will map existing refining capacities in Europe, assess needs, and work on measures to ensure full use of – and sufficient – domestic refining capacity. 2. Protecting consumers and industry from price shocks
2. Protecting consumers and industry from price shocks
- Emergency measures must be targeted, timely, temporary and tied to long-term solutions.
- Member States can activate a wide range of measures under the existing EU legislative and policy framework, including the Citizens’ Energy Package.
- A State aid temporary framework will support strategic investment in energy infrastructure and clean technologies.
3. Accelerating the shift to home ground clean energy and electrification
- Boost domestic production of homegrown clean energy – such as renewables, nuclear and sustainable biofuels.
- Improving insulation, electrifying heating and cooling, and replacing inefficient household appliances can deliver immediate and long-lasting energy savings and cost relief. This will also boost clean tech manufactured in the EU and create jobs.
- The upcoming Electrification Action Plan will have an ambitious electrification target and measures to address barriers in the industrial, transport and building sectors.
4. Strengthening EU energy system
- Full implementation of existing EU energy legislation, fast-track negotiations on the EU Grids Package and adoption of a legal proposal on network charges and taxation. The Commission will also present a legislative proposal on network charges and taxation, ensuring among others electricity is taxed less than fossil fuels.
- Speeding up planning and permitting of energy infrastructure, and support to Member States to increase battery, flexibility and thermal storage capacities.
5. Boosting investment
- The Commission will empower Member States to maximise the use of available EU funding for energy-related investments (€219 billion from Recovery and Resilience Facility; cohesion policy funds).
- Encourage the use of EU ETS revenues to accelerate electrification investment and reduce electricity prices.
- To mobilise private investments, the Commission therefore adopted a Clean Energy Investment Strategy in March 2026. The Commission will also organise a Clean Energy Investment Summit that will bring together institutional investors and industry to accelerate private financing.
Top actions from the AccelerateEU Annex
Boosting the uptake of clean technologies
- Large-scale subsidies for heat pumps, geothermal and solar energy, combined with a EUR 500 million ‘Heat Fund’ for industry to convert from fossil fuels to biomass, wind and solar,.
- Encourage the uptake of heat pumps in new buildings by 2027.
- Roll out social leasing schemes for electric vehicles.
- Reduce VAT to 6% for heat pumps, solar PV and solar boilers.
- Providing vulnerable households with up to 100% subsidy to replace fossil boilers.
- Obligation for companies to implement all energy efficiency measures that have a payback period of less than five years.
- Subsidy scheme for zero-emission commercial vehicles for companies.
- Lower electricity prices for heat pumps in exchange for system flexibility.
- Organising and participating in double-sided auctions for eSAF production under the eSAF Early Movers Coalition.
- Tax or other financial incentives for corporate e-vehicle fleets.
Building-sector measures
- Provide up to 50% subsidies and zero-interest loans (up to EUR 50,000) for building renovations, including insulation.
- Integrated plan combining behavioural measures, quick-payback investments and long-term renovation, targeting 20% energy savings over two years.
- Awareness raising campaign to reduce heating temperatures by 1 °C and increase cooling temperatures by 1 °C in public buildings.
- Energy-saving ordinances targeting the public sector, businesses and households with rules on heating, lighting and energy use, to reduce gas consumption by approximately 20 TWh per year.
Executive summary
On 4 March 2026, the European Commission tabled its proposal for an Industrial Accelerator Act (IAA), formally a Regulation establishing measures to accelerate industrial capacity and decarbonisation in strategic sectors in the European Union.
The Commission identifies three main challenges:
- Limited demand and weak price signals for European low-carbon industrial product
- Supply chain vulnerabilities in strategic sectors and net-zero technologies
- Slow deployment of industrial decarbonisation technologies
In a wider policy context, this diagnosis broadly aligns with the concerns raised with the Draghi report on European competitiveness, which emphasised weaker productivity growth, rising external competition, greater exposure to strategic dependencies, and the need to combine decarbonisation with industrial renewal.
The initiative sits in the broader policy logic of the Clean Industrial Deal and is intended to strengthen the competitiveness, resilience and decarbonisation of EU manufacturing in selected sectors, with particular attention to energy-intensive industries, net-zero technologies and the automative industry.
In the official impact assessment, this goal is broken down into five specific objectives:
- Facilitating differentiation of low-carbon industrial products;
- Boosting demand for European low-carbon products and net-zero technologies;
- Maximising the quality and benefits of foreign investment;
- Speeding up and simplifying permits for industrial decarbonisation;
- Increasing investment projects in industrial decarbonisation areas.
In practice, the IAA proposal is a single-market instrument combining four main levers:
- Demand-side measures for certain strategic products (including “Union Origin requirements” in public procurement and auctions)
The IAA introduces ‘Made in EU’ and low-carbon preferences in public procurement and public support schemes to boost demand for European industrial products, such as cement, aluminium, net-zero technologies like batteries, solar, wind, heat pumps, and nuclear.
IAA mandates two-phase EU-origin requirements for batteries across public procurement (Article 25b), renewable energy auctions (Article 26), consumer support schemes (Article 28b), and manufacturing support (Article 28d).
- Ensure that foreign direct investments bring value to the EU
The legislation also imposes conditions (job creation, innovation, R&D activity, shareholding, sourcing, joint ventures) on foreign direct investment. Investments exceeding €100 million in strategic sectors, including batteries, require approval when a single third country controls more than 40% of global manufacturing capacity.
- Simplify permitting procedures for industrial projects
The IAA streamlines and digitalises permitting procedures for industrial projects. This includes the introduction of a single digital ‘one-stop-shop’ with clear time limits as well as the principle of tacit approval at intermediate stages of the permit-granting process for energy-intensive decarbonisation projects.
The IAA introduces Industrial Acceleration Areas with streamlined permitting (area-wide permit and tacit approval) to promote new investments and facilitate decarbonisation. Projects in these areas will avail of profiling with investors and support with skills development.
- Boost sustainable manufacturing
Third-country firms must deposit specified quantities of critical raw materials (lithium, cobalt, nickel, manganese, graphite) at EU stockpiling centres when Commission implementing acts trigger obligations due to third-country export restrictions (Articles 21-27).
The Commission also links the file to a broader industrialisation objective, under which the European Union and its Member States are to seek to ensure that manufacturing reaches 20% of EU GDP by 2035. To reach these goals, the IAA also amends existing legislation, most notably the Net-Zero Industry Act (NZIA), alongside the Single Digital Gateway Regulation, and the Construction Product Regulation. In other words, the proposal partly builds upon existing frameworks rather than creating an entirely separate regime.
As of March 2026, the file is now with the European Parliament and the Council under the ordinary legislative procedure. Under the draft text, the Regulation would enter into force on the day following publication in the official journal. Some sector specific requirements would phase in later on (for instance “Union Origin requirements” for public procurement and auctions).
Concretely, the European Commission assumes the IAA entry into force in 2027, but this is not a binding deadline in the proposal itself. In fact, the controversial nature of the text might lead to lengthy negotiations within and between the EU co-legislator (European Parliament and Council) and to the proposal being heavily amended.
The Committee of the Regions has launched a consultation, led by Rapporteur Willy Borsus, inviting stakeholders to provide input by 7 May 2026 on key aspects of the Industrial Accelerator Act, including the role of local authorities, administrative burden and impact on public procurement, regional balance, and EU funding and links to other EU legislation.
The European battery market is now focused on delivery, cost, supply security and project finance. Across three days, the agenda will examine battery raw material pricing, midstream capacity, recycling and black mass, energy storage demand, battery chemistry, policy and investment. Attendees will meet the companies shaping Europe’s battery supply chain and the projects moving from planning into production.
BEPA’s Executive Director, Bozorg Khanbaei, will speak at the event.
Read the agenda here!
Register here!
For 31 consecutive years, ICBR has brought together the international community of experts and decision makers of the entire Battery Recycling value chain, including battery recyclers and manufacturers, collection organizations, OEM’s, policymakers, materials and services providers
and many more.
Read the programme here!
Register here!
The Energy Storage Europe Conference (formerly the Energy Storage Global Conference) remains a key meeting point for industry, researchers, and policymakers, with discussions centred on Europe’s energy storage priorities. Organised by Energy Storage Europe, the 3-day event will take place in Brussels on 6-8 October 2026.
The conference is deliberately content-focused, with a strong emphasis on the quality, depth, and relevance of discussions. The programme is designed to prioritise substantive exchanges, evidence-based analysis, and informed debate among participants.
The ninth edition of the conference brings together over 300 delegates, including leaders from across the energy storage ecosystem, for three days of insights, networking, and innovation.
Executive summary
The Battery Booster Facility was adopted on 9 June 2026, establishing the instrument, its objectives, and some of the key elements concerning eligibility, award criteria and implementation conditions.
Up to €1.5 billion from EU Emissions Trading System (ETS) revenues under the Innovation Fund will be mobilised through the Booster to support battery cell manufacturers in scaling up production in Europe. For the first time, the Commission will provide direct support in the form of interest-free loans.
The aim is to stimulate private investment, speed up industrial deployment and strengthen Europe’s industrial competitiveness and strategic autonomy in clean technologies. Eligible projects must produce battery technology suitable for use in electric vehicles (EVs), although off takers may use the products for other purposes. Production must be located within the European Economic Area (EEA), with a minimum production capacity of 10GWh.
A loan instrument has been selected instead of traditional grants (maximum loan amount per project is €500 million) to encourage sound capital management, support faster progress toward commercial viability, and complement private sector investment. Applications will be assessed based on technical and financial maturity as well as their added value to the European economy.
Next steps
Following the adoption of the Decision, the Commission will launch a call for proposals in Q3 2026, indicatively for 6 weeks. The Commission aims to award the first projects under the Facility and make the first payments before the end of 2026.
Overview
The Commission Decision C(2026) 3828/2 establishes the Battery Booster Facility as a 2026 financial instrument under the Innovation Fund to support electric vehicle (EV) battery cell production in the ramp-up phase.
Budget:
- EUR 1.5 billion (2026).
- Financed through ETS auction revenues allocated to the Innovation Fund.
Objective:
- De-risk and accelerate first full commercial-scale EV battery cell production facilities in the EEA during their ramp-up phase.
- Strengthen EU industrial resilience and supply chain autonomy.
Ramp-up phase is defined as the transition from production part approval to 95% nameplate capacity.
Form of Support
Provided as interest-free loans.
Can be combined with other EU or national support, provided total public support does not exceed eligible costs.
Maximum support:
- Up to 60% of eligible costs.
- Capped at EUR 500 million per recipient.
Loan conditions:
- Maximum tenor of 10 years.
- Repayment begins at ramp-up completion or 48 months after signature.
- Equal annual repayments over 6 years.
- Subordinated to senior lenders.
- Appropriate contractual remedies will apply if production relocates outside the EEA within 12 months of cessation.
- Disbursement based on agreed milestones.
Eligible Projects & Entities
Applicants must be established in the EEA.
Production site must:
- Be located in the EEA.
- Have at least 10 GWh nameplate capacity.
- Be in ramp-up phase at the time of call opening.
- Represent the first global full commercial-scale EV battery cell production of the applicant (and related entities).
Eligible Costs
Limited strictly to costs incurred:
- During the ramp-up phase.
- From call opening to 48 months after loan signature.
May include:
- Personnel.
- Materials, energy, supplies.
- Contracted works and services.
- Capital expenditure within the project.
Excludes:
- Repayment of other loans.
- Dividends
- Payments of variable remuneration or similar financial distributions.
Call for proposals
Open call for proposals managed by the Commission.
Applicants must demonstrate:
- Suboptimal investment situation.
- Economic viability.
- Operational capacity.
- That private financing exceeds the Union contribution.
- No crowding-out of other funding sources.
Selection & Award Process
Award criteria:
- Financial maturity of the project and economic viability of the final recipient.
- Technical maturity of the project and a credible implementation plan.
- Contribution to European industrial resilience and added value for the European economy, including:
- Supply chain security.
- Critical raw materials considerations.
- IP and innovation ecosystem engagement.
- Skilled workforce development.
- Support to downstream sectors (e.g. automotive).
Proposals ranked and funded within the available budget.
Governance & Safeguards
Loan agreements define:
- Reporting, audit and anti-fraud provisions.
- Protection of the Union’s financial interests.
- Visibility obligations for EU funding.
The Commission monitors implementation and reports annually to Member States through the Innovation Fund reporting framework.
Background
The Decision builds on a series of recent Innovation Fund initiatives in support of the EU battery sector. In December 2024, the Innovation Fund launched a €1 billion call for proposals for electric vehicle battery cell manufacturing (IF24 Battery). At the same time, the Commission and the European Investment Bank (EIB) presented a €200 million top-up from the Innovation Fund to the InvestEU guarantee to support investment in European battery manufacturing.
The Innovation Fund, financed by revenues from the auctioning of allowances under the EU ETS supports the deployment of innovative net-zero technologies, including batteries, helping to boost the EU’s industrial manufacturing capacity.
On 16 December 2025, the Commission adopted the Communication on a Battery Booster Strategy, which announced the Battery Booster Facility. In March 2026, the Commission consulted the public on the draft Commission Decision on the Facility, gathering stakeholder input ahead of the formal adoption.
BEPA’s new Policy Talk focuses on the Industrial Accelerator Act and its implications for the battery sector.
The upcoming Industrial Accelerator Act aims to strengthen Europe’s industrial competitiveness and accelerate the deployment of strategic clean technologies. At its core lies a strong “Made in Europe” agenda – ensuring that key technologies, including batteries, are produced and scaled within Europe.
This webinar explored what the Industrial Accelerator Act means for the battery research and innovation community, and how upcoming EU instruments – including Framework Programme 10 and the European Competitiveness Fund – can reinforce Europe’s leadership across the battery value chain.
Find the recording here and the PPT here!
This webinar for BEPA members focused on the advisory services of the European Investment Bank, it took place on 18 March at 10 am. During this webinar, heard from the EIB about the services members can apply for. Successful applications would receive free advisory services.
Find the recording here and the PPT here!
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Batteries are a key technology in the energy transition: they are essential for electrifying our transport sector and supporting the development of renewable energy. Whilst Asia, and China in particular, have gained a considerable lead, it is essential, in order to safeguard our sovereignty, that we establish a comprehensive value chain in Europe.
An overview based on strategic French projects and in partnership with BEPA.
BEPA’s Secretary General, Fabrice Stassin, will be among the speakers.
Find out more here!