EU Battery Booster Package sends clear signal for battery manufacturing in Europe

The European Battery Alliance (EBA) welcomes today’s announcement by Executive Vice-President Stéphane Séjourné on the Battery Booster package, a core element of the EU Automotive Package aimed at strengthening Europe’s battery industrial base at a critical moment in its scale-up.

The package mobilises €1.8 billion in targeted support and sets out a coherent framework to address bottlenecks across the battery value chain. It is structured around five key pillars intended to accelerate the development of a fully European battery value chain:

• Financing to support investment and industrial scale-up;
• Access to raw materials and critical battery materials to secure upstream supply chains;
• Stricter conditions on foreign investment to protect strategic assets;
• Demand-side support through local content requirements, particularly where public funding is involved;
• Acceleration of research and innovation to sustain Europe’s technological leadership.

While today’s announcement focused primarily on financing and industrial deployment, the Battery Booster sets a broader framework combining investment, regulation and market incentives.

In a context of intense global competition, the package sends a clear signal that the European Union is committed to anchoring battery manufacturing in Europe. By improving investment conditions and strengthening demand for EU-made batteries, it reinforces the business case for domestic production and reduces reliance on imports.

A strong European battery value chain is essential for the future of Europe’s automotive and clean mobility sectors, helping to secure supply, limit exposure to price shocks, support high-quality jobs and safeguard Europe’s industrial leadership.

Targeted financing to bridge the “valley of death”

At the core of the Battery Booster package are financing measures aimed at Europe’s most acute industrial bottleneck: the transition from initial investment to large-scale production.

Of the €1.8 billion envelope, €1.5 billion will be allocated to European battery cell manufacturers to support ramp up of production to giga-scale, alongside €300 million for critical raw materials projects operating in Europe. Support will be delivered primarily through interest-free loans.

The EBA also welcomes confirmation that production support could be included in the EU’s next long-term budget (2028–2034) to accompany the ramp-up phase of battery manufacturing, providing essential backing to help European producers close early cost gaps and signal long-term commitment to investors.

These measures directly address the “valley of death,” where high capital costs and global price competition have hindered industrial scaling. By easing financing constraints, they enable European producers to scale up, enhance competitiveness and compete with heavily subsidised global players – mirroring strategies used by competitors in the early stages of their own battery industries. At the same time, support for critical raw materials projects strengthens upstream supply chains and reinforces the resilience of the entire battery value chain.

Speed of implementation will now be decisive. Only rapid and predictable deployment of funds will be key to restoring confidence, mobilising private capital and moving projects swiftly from planning to production.

Strengthening demand for EU-made batteries

The package is closely aligned with upcoming EU initiatives, including the Industrial Accelerator Act, under which Made-in-EU requirements for batteries and their components where public funds are involved are expected to be proposed in early 2026. These measures are intended to strengthen demand for EU-made batteries and create a more level playing field for European producers.

In parallel, the Commission is considering new conditions for foreign direct investment (FDI) in the battery value chain, as part of a wider effort to reinforce Europe’s economic security and protect strategic assets.

Together, these measures contribute to a more predictable and supportive market environment for battery manufacturers operating in Europe.

An ongoing dialogue with policymakers

The announcement follows months of close engagement between policymakers and industry as Europe’s battery manufacturers face growing competitive pressure.

During this period, the EBA has engaged in ongoing dialogues with European institutions, as outlined in our previous news posts and updates, bringing forward industry perspectives and practical insights on the conditions needed to support the sector’s scale-up.  These exchanges have helped build a shared understanding of the strategic importance of batteries for Europe’s industrial future, which is reflected in today’s package.

The European Battery Alliance looks to the implementation phase, noting that timely delivery, clear rule and rapid execution will be critical for the Battery Booster to deliver its full impact – enabling Europe’s battery industry to scale, compete globally and remain firmly anchored in Europe.

Read more on today’s announcement regarding the Automotive Package and Battery Booster here: Remarks by Executive Vice-President Séjourné and Commissioners Hoekstra, Tzitzikostas and Dombrovski