Funding of €1 billion for battery manufacturing

Last week, the European Commission launched the Batteries call under the Innovation Fund programme for 2024, with a budget of €1 billion to finance projects focused on the manufacturing of battery cells for electric vehicles. These projects must demonstrate innovative technologies, processes, or products that are sufficiently mature and have significant potential to reduce greenhouse gas emissions. This initiative contributes to the objectives of the Strategic Technologies Platform for Europe (STEP) and aims to bolster the EU’s industrial capacity in this critical technology to meet its climate neutrality goals. The deadline for submitting applications is 24 April 2025.

The Innovation Fund Batteries call seeks to address the growing demand for electric vehicles in Europe, in line with the strict EU regulations on CO₂ emissions for both light and heavy vehicles. “The energy transition is not possible without a solid electric battery industry. This call represents a unique opportunity to position the EU as a global leader in this field,” said Carolina Simón, a consultant at Zabala Innovation in European Projects and an expert in this initiative.

Innovation Fund Batteries call: eligible projects and scope

The Batteries call will exclusively fund the manufacturing of electric vehicle battery cells. Activities related to module or pack assembly, preliminary production steps, or recycling of components that exceed 100% of the project’s cell production capacity, as well as mining activities, are excluded from this call.

The European Commission has set strict sustainability requirements for projects, aligning them with the EU’s priorities, such as reducing greenhouse gas emissions, promoting material circularity, and enhancing strategic autonomy.

“It is crucial that projects are ambitious and sustainable in the long term. Interested companies must submit solid plans that include technologies, processes, or products that are sufficiently mature with significant potential to reduce environmental impact,” explained Simón.

Among the evaluation criteria, the innovation potential will be a key factor, measured by both the performance of the batteries and advancements in production processes. Additionally, the reduction of the carbon footprint compared to current standards will be evaluated. “The project must go beyond mere incremental innovations,” Simón warned. The ability to replicate the project in other industrial contexts and its contribution to reducing dependence on critical materials from non-EU countries will also be assessed.

Project evaluation will follow a cascade system, with innovation being the first filter. Only projects that pass this initial threshold will be assessed on other parameters, including emission reductions, technical and financial maturity, and the efficiency of the requested funds.

A key aspect of the call is the requirement for projects to achieve financial closure within four years of the grant agreement signing, and to remain operational for at least three years after becoming operational. This requirement is designed to ensure the viability and real impact of the investments.

Boosting European strategic autonomy

The production of electric batteries has become a central pillar of the EU’s industrial strategy, especially as the dependency on critical materials and components from China poses a challenge to supply security.

The Batteries call for Innovation Fund 2024 encourages the diversification of supply chains and rewards projects that use raw materials sourced from European or recycled sources, as well as those adopting technologies that reduce dependency on critical materials like lithium or cobalt.

“Supply security is a priority factor. Proposals that include strategies to reduce dependence on third countries, especially for materials like anodes and cathodes, will have a significant advantage,” added Simón.

The Batteries call for Innovation Fund 2024 arrives at a crucial time for the electric battery sector in Europe. According to recent data, demand for batteries for electric vehicles is expected to grow exponentially in the coming decade, driven by decarbonisation objectives and the increasing electrification of transport.