BEPA Policy Talk: Powering Innovation

29 September 2025

The EU budget is primarily used for investment and complements national budgets. Its main goal is to boost growth and competitiveness at the EU level. Several programmes are relevant for research and innovation in batteries, such as Horizon Europe (collaborative research and partnerships, EIC, ERC), the new European Competitiveness Fund — including the Innovation Fund and specific policy priorities— the Connecting Europe Facility, and others.

• Budget increase and simplification: The proposed MFF for 2028-2034 maintains a 2 trillion-euro ceiling, up from the previous 1.2 trillion, and reduces the number of budget headings from 7 to 4 and programs from 52 to 16, aiming to simplify access and allocation for beneficiaries such as industries and research institutions.
• New headings and focus areas: The new MFF will be structured around four main headings, with a significant focus on the ‘Competitiveness, Prosperity and Security’ heading, which includes the European Competitiveness Fund (ECF) and is particularly relevant for the battery sector.
• Implications for the battery sector: It was emphasized that the battery value chain is recognized as a key enabler for Europe’s competitiveness and decarbonization, with the new budget structure aiming to support strategic technologies and industrial scale-up within Europe.
• Integration of funding schemes: The ECF will consolidate several funding schemes, including the Innovation Fund and the European Defence Fund, and will be managed with a Single Rulebook to allow for community funding and third-party contributions, streamlining the process for applicants.

Horizon Europe – Changes and budget allocation:

The proposed changes to Horizon Europe will be: a near doubling of its budget to 175 billion euros, restructuring into four pillars, and significant increases in funding for fundamental research, collaborative research, innovation, and research infrastructure, with a focus on supporting start-ups and dual-use research.

• Budget increases across pillars: Pillar 1 (Excellent Science) will increase from 25 to 44 billion euros, Pillar 2 (Competitiveness and Society) from 53.5 to 75.8 billion euros, Pillar 3 (Innovation) from 13.6 to 38.7 billion euros, and Pillar 4 (European Research Area) from 3.4 to 16.2 billion euros.
• Program simplification and harmonization: The program will introduce simplification measures such as a single funding rate, lump sums as the default contribution form, and a reduction in the time to grant from 8 to 7 months, aiming to reduce administrative burden and harmonize rules across partnerships.
• Support for startups and high-risk projects: A DARPA approach will be adopted to support high-risk, high-reward projects, with the European Innovation Council receiving a significant budget boost to provide grants and equity funding to startups and researcher-led innovation projects.
• Strategic focus on Clean Transition: The clean transition and industrial decarbonization priority within Pillar 2 will see a 68% increase in funding compared to the current allocation (from 15 to 25.5 billion euros).

Panellists, Beatrice Coda, Head of Unit at EU Science, Research and Innovation, Ilka von Dalwigk, Director General at RECHARGE, Dr. Franz Geyer, Head of Technology and Strategy at BMW Group and Fabrice Stassin, Secretary General of BEPA, discussed the implications of the MFF and Horizon Europe proposals for the battery sector, addressing the division of roles between Horizon Europe and the ECF, the importance of scale-up funding, and the need for strategic prioritization of batteries in EU policy.

• Division of scopes between Horizon Europe and ECF: Horizon Europe will focus on research and innovation, while the ECF is intended to complement and scale up R&I results, ensuring continuity and seamless transition from research to industrial application.
• Panellists highlighted the relevance of research and technology infrastructures (Pillar IV) for batteries, as well as the role of the European Innovation Council (EIC), whose boost is intended to support startups, and dual-use, that opens up opportunities for the battery sector.
• Opportunities and challenges for the battery sector: Panellists highlighted the need for clear prioritization of batteries as a strategic value chain, the importance of supporting the entire value chain from research to industrialization, and the necessity of earmarking or ring-fencing budget for battery-related activities.
• Partnerships simplification and streamlining: The panel discussed the proposed simplification of partnerships, the use of a portfolio approach, and the potential for more flexible and harmonized rules to facilitate collaboration and reduce administrative barriers. The proposal for a Single Rulebook reflects the unified EU approach for the pooling of funding.
• Industry perspective on scaling and deployment: Panellists emphasized the need for support for pilot lines and scaling processes, and the importance of reducing time to market to maintain European competitiveness.

Panellists discussed strategies to enhance support for the battery sector in the MFF, including:

• Advocating for batteries as a strategic technology, potentially through earmarking budget or ring-fencing funds, and communicating the sector’s critical role in Europe’s industrial future.
• Fostering a unified European battery ecosystem: BEPA to present a coherent narrative of the battery sector’s contribution to European competitiveness, leveraging partnerships and memoranda of understanding.
• Ensuring alignment between EU, national, and regional funding priorities: The discussion emphasized the need for dialogue with Member States to ensure that national and regional plans align with EU priorities, and for BEPA to contribute to the simplification and coherence of funding strategies across different governance levels.
• BEPA plays an important role in the priorities setting, notably with the Strategic Research and Innovation Agenda (SRIA), making the case as a strong battery ecosystem.
• BEPA will continue as a single entity in the next Framework Programme for Research and Innovation and in the European Competitiveness Fund.

Panellists explored how best to enhance synergies between Horizon Europe and the ECF, emphasizing the need for continuity from research to scale-up, consistent investment, and alignment with broader regulatory frameworks.

• Horizon Europe should focus on innovation while the ECF supports scaling up, with a seamless transition between the two to maximize impact and ensure long-term support for the battery sector.
• ECF-supported projects to be aligned with other regulatory initiatives, such as the Net Zero Industry Act and Critical Raw Material Act, to create market pull and demand for domestically produced batteries.

The next MFF will be decisive for Europe’s battery sector. Looking ahead, the negotiations on the MFF are about more than just numbers; they are about Europe’s ability to innovate and compete globally. Let’s ensure that battery R&D remains a high priority, and work together to turn ambition into action.