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.