The European Commission has launched a new financial tool to strengthen the European battery value chain. Brussels opened a call for proposals on Tuesday, offering up to €1.5 billion in interest-free loans to support projects manufacturing cells for electric vehicles in the European Economic Area.
Interested companies can submit their applications until September 30 , within a program financed by the Innovation Fund , whose resources come from the European emissions trading scheme (ETS).
The call will allow financing of up to 60% of the eligible costs of each project, with a maximum limit of 500 million euros per beneficiary .
The goal: to overcome the industrial "valley of death"
The new instrument is part of the Battery Boost Mechanism , presented by the European Commission last June to strengthen the bloc's industrial capacity and reduce dependence on foreign suppliers.
Unlike other support programs aimed at research or plant construction, this call focuses on one of the most complex stages of industrial development: increasing production .
This is the period between the manufacture of the first series and the start of large-scale commercial production, a phase in which companies must assume high operating costs before the facilities begin to generate stable revenue.
With this funding, Brussels aims to help gigafactories accelerate their scaling up, attract private investment, and enter commercial operation sooner.
Requirements to access financing
The Commission establishes several criteria for accessing these loans.
The projects must be located in the European Economic Area and focus on the manufacture of battery cells intended for electric vehicles .
Furthermore, the plants must already be in the production ramp-up phase when the call for tenders opens and correspond to the applicant's first facility worldwide capable of commercially manufacturing these cells at full capacity.
Another requirement is to reach a minimum planned capacity of 10 GWh per year .
Applications will be evaluated taking into account aspects such as the technical and financial maturity of the projects and their contribution to strengthening the European battery ecosystem.
Europe accelerates its industrial strategy
The new call for proposals is part of the community's strategy to consolidate a European battery industry capable of supporting the growth of electric vehicles.
With this instrument, Brussels seeks to facilitate the transition from the construction of new factories to their commercial operation, one of the main challenges currently facing European gigafactories in a context of high international competition and strong pressure on production costs.