The European Commission has announced an investment of €852 million to support six innovative electric vehicle (EV) battery cell manufacturing projects. These grants come from the Innovation Fund, which utilizes revenues generated by the EU Emissions Trading System (EU ETS). This funding aims to foster growth and investment in the EU’s battery manufacturing sector, aligning with broader decarbonization and industrial competitiveness goals.
The selected projects are: 1. **ACCEPT** – Automotive Cells Company European Production Take-off, France 2. **AGATHE** – Advanced Gigafactory Aiming at Tempering greenhouse gases Emissions, France 3. **CF3_at_Scale** – Scaling of innovative manufacturing processes for high-performance cells, Germany 4. **NOVO One** – NOVO One Gigafactory, Sweden 5. **WGF2G** – Willstatt GigaFactory 2 GWh, Germany 6. **46inEU** – Powering the Future – 46 Cylinders, Infinite Possibilities in Europe, Poland
All projects are expected to start operations before 2030. They will receive financial support to cover both capital and operational expenses, with funds disbursed upon reaching specific project milestones. Some of the funding may be released before operations commence to aid the investment phase.
Over the first decade of operation, these projects are projected to cut greenhouse gas emissions by approximately 91 million tonnes of CO2 equivalent. Once fully operational, they are expected to produce a total annual manufacturing capacity of around 56 gigawatt-hours (GWh) of EV battery cells.
Grant agreements are anticipated to be signed with the European Climate, Infrastructure and Environment Executive Agency (CINEA) in the third quarter of 2025. Additionally, other promising projects that did not meet the eligibility criteria can still access project development assistance from the European Investment Bank.
The Innovation Fund received 14 proposals from eight countries during this Battery Call, with 13 meeting the eligibility requirements. The six projects were evaluated by independent experts based on innovation, potential emission reductions, financial and technical maturity, replicability, and contributions to the EU’s supply security and cost efficiency.
Since its inception in 2021, the Innovation Fund has allocated around €12 billion to support over 200 innovative projects across the European Economic Area (EEA). This targeted Battery Call is part of a larger effort to enhance Europe’s battery value chain with up to €3 billion in financial support, addressing economic and technical challenges within the sector, particularly amid global competition and supply chain vulnerabilities.
